Singapore Budget 2018 : Carbon Tax – What does it mean to your company
In his Budget speech on 19 February 2018, Minister Heng Swee Keat announced that from 2019, carbon tax will be introduced to encourage reduction of greenhouse gas (GHG) emissions. In the first instance, from 2019 to 2023, the tax rate will be $5 per tonne of GHG emissions. The carbon tax announced will be levied on facilities producing 25,000 tonnes or more of GHG emissions in a year. All other companies will not be taxed on direct emissions, but may be indirectly impacted by the carbon tax through higher electricity costs. Companies are encouraged to take measures to reduce carbon emissions, and do your part to create a higher-quality living environment for all. From 2019, the Government will set aside funds to enhance support for companies, including SMEs and power generation companies, to improve energy efficiency. More details will be shared by government agencies at a later date. In the meantime, please visit the Energy Efficiency Programme Office (E2PO) microsite at www.e2singapore.gov.sg to find out about the existing energy efficiency incentives your company can tap on.