Singapore defers SAF levy for cargo by one year as passenger rollout stays on track

Singapore’s Civil Aviation Authority has delayed the sustainable aviation fuel levy for air cargo by one year, pushing implementation to tickets sold from 1 October 2027 for flights departing Singapore from 1 January 2028. The passenger levy remains on schedule for tickets sold from 1 October 2026 for departures from 1 January 2027, keeping the wider SAF cost-recovery framework on course for the city-state’s aviation market.

The revised timetable follows feedback from cargo operators, airlines, freight forwarders, air express companies and shippers, with cargo handling judged more complex than passenger operations and in need of a more robust levy-collection system. The extra time is intended to allow the industry and the authorities to build that mechanism before charges begin.

The SAF levy was first unveiled in November 2025 and had already been delayed once on the passenger side because of disruption linked to Middle East conflict. SAFCo is expected to use levy proceeds to purchase sustainable aviation fuel, with the first delivery targeted for mid-2027.