ESG by ZYT← All answersSingapore and Malaysia
Does Singapore’s carbon tax apply to my business?
Almost certainly not. Singapore’s carbon tax applies only to facilities emitting at least 25,000 tonnes of CO2e a year directly — refineries, power stations, large petrochemical plants. The rate is S$45 per tonne for 2026 and 2027, with a stated intention to reach S$50–80 by 2030. There are no exemptions below the threshold because there is no tax below it.
To put 25,000 tCO2e in perspective: a single Singapore site would need to draw roughly 60 million kilowatt-hours of electricity a year to reach that figure, and even then it would not count, because the tax covers direct emissions rather than purchased electricity. No ordinary SME is close.
It still reaches you indirectly. Taxed facilities pass costs into electricity and fuel prices, so the carbon tax shows up in your bills rather than your tax return. That is the mechanism it was designed to use.
Sources
- Carbon Tax — National Climate Change Secretariat, Singapore. Checked 2026-09-04.
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Last reviewed 2026-09-04