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Singapore Budget 2018: Singapore to slap carbon tax from 2019, to collect revenue of S$1b in first 5 years
SINGAPORE will proceed with the planned carbon tax from 2019 to encourage firms to further cut emissions, Finance Minister Heng Swee Keat said on Monday.
The carbon tax will be S$5 per tonne of greenhouse gas emissions in the first instance from 2019 to 2023.
It will be imposed on all facilities producing 25,000 tonnes or more of greenhouse gas emssions in a year. It will be levied on the total emissions of each of these facilities, with the first payment in 2020, based on emissions in 2019.
"We will review the carbon tax rate by 2023," Mr Heng said. adding that the intention is to increase it to a rate of between S$10 and S$15 per tonne of emissions by 2030.
The government expects to collect carbon tax revenue of nearly S$1 billion in the first five years.
The carbon tax will be levied on major emitters, which account for 80 per cent of Singapore's emissions, said Mr Heng. The remaining 20 per cent is contributed by other sources.
"We will study how to account for these emissions, and take action where necessary," he added.
For more Budget 2018 stories visit bt.sg/budget18