At Budget 2017, the Singapore Government announced its intent to implement a carbon tax on the emission of greenhouse gases. The Government mentioned that it will consult widely with stakeholders, and aim to implement the carbon tax from 2019. The tax will generally be applied upstream, for example, on power stations and other large direct emitters, rather than electricity users. In addition, they are looking at a tax rate of between $10 and $20 per tonne of greenhouse gas emissions. This is in the range of what other jurisdictions have implemented.

A carbon tax will enhance Singapore’s existing and planned mitigation efforts under our Climate Action Plan, and stimulate clean technology and market innovation. It will create a price signal to incentivise industries to reduce their emissions, complementing other regulatory measures.

Revenue from the carbon tax will help to fund measures by industries to reduce emissions. The impact of the carbon tax on most businesses and households should be modest.

Singapore Government had started industry consultations and will continue to reach out to companies to hear their views. Public consultations will begin in March 2017.

EditorEnergyPowerCarbon,Singapore,TaxAt Budget 2017, the Singapore Government announced its intent to implement a carbon tax on the emission of greenhouse gases. The Government mentioned that it will consult widely with stakeholders, and aim to implement the carbon tax from 2019. The tax will generally be applied upstream, for example, on...