Indonesian Political, Business & Finance News

Middle East Conflict Prompts Singapore to Delay Aviation SAF Levy Implementation

| | Source: KOMPAS Translated from Indonesian | Regulation
Middle East Conflict Prompts Singapore to Delay Aviation SAF Levy Implementation
Image: KOMPAS

The Civil Aviation Authority of Singapore (CAAS) has delayed the implementation of a sustainable aviation fuel (SAF) levy for passengers departing from Singapore. This postponement takes into account the impact of the ongoing conflict in the Middle East on airlines and passengers. In an official statement on Wednesday (25/3/2026), CAAS announced that the levy, originally planned to take effect from 1 April 2026, will now apply to tickets and services sold from 1 October 2026, for flights departing from 1 January 2027. Previously, in November 2025, CAAS had announced that passengers on flights departing from Singapore would be subject to the SAF levy, ranging from S$1 to S$41.60 per ticket, depending on the destination and cabin class. Assuming an exchange rate of Rp 13,193 per Singapore dollar, this levy equates to approximately Rp 13,193 to Rp 548,829 per passenger. The levy policy was initially scheduled to apply to tickets sold from 1 April 2026 for flights departing from Singapore on or after 1 October 2026. CAAS explained that for flights with multiple stops, the levy amount will be determined based on the next direct destination after departing from Singapore. Under the previously designed scheme, the levy does not apply to transit passengers who only stop over in Singapore before continuing to another country. Thus, only passengers beginning or ending their journey in Singapore will be subject to the levy. In addition to passengers, this policy also covers air cargo shipments. The levy for cargo will be charged based on origin-destination shipments, while general aviation and business flights departing from Singapore will also fall under the policy’s scope.

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