Singapore is set to announce its revised carbon tax rate at the upcoming Budget 2022 on Feb 18. The environmental tax is put in place to change the behaviour of taxpayers and encourage them to switch to cleaner energy sources.
Deputy Prime Minister Heng Swee Keat first spoke about the review of Singapore’s carbon tax at the unveiling of Budget 2021. On Feb 16 last year, Heng said: “We will announce the outcome of the review at Budget 2022 to give time for businesses to adjust to any revision in the carbon tax trajectory.”
First announced at Budget 2018, Singapore’s carbon tax rate is fixed at $5 per tonne of carbon dioxide equivalent (tCO2e) until 2023. Unlike typical grouses about taxes, some think the rate is far too low. “The general consensus among the scientific community is that carbon prices and carbon tax rates are currently far too low. These rates will need to be significantly increased if the world is to reach net zero emissions by 2050,” says Mark Addy, a partner at professional services firm KPMG in Singapore.