Budget 2022: Carbon tax set to rise to S$50-80 by 2030; watchers call surprise move 'bold', 'aggressive'

IN a surprise move watchers described as "bold" and "aggressive", the government has signalled that it will raise the carbon tax rate at least thrice within the decade, to ultimately reach S$50 to S$80 per tonne of greenhouse gas emissions by 2030.

Finance Minister Lawrence Wong announced in his Budget speech on Friday (Feb 18) that the first increase, to S$25 per tonne on companies that emit at least 25,000 tonnes of greenhouse gas annually, is set to take effect from 2024.

This will be followed by an increase to S$45 per tonne in 2026 and 2027, with the view to reach S$50 to S$80 per tonne by 2030, he added.