The Singapore Government will be imposing a carbon tax from 2019 – a tax that is expected to affect the electricity and gas expenses of all households in Singapore. Finance Minister Heng Swee Keat confirmed this as he delivered the Budget 2018 speech this afternoon.
The Minister said in his Budget speech last year that the tax is aimed at creating a “price signal” so that industries will have an incentive to reduce emissions. He had said that the tax will not directly apply to households but predicted a “modest” trickle-down effect on consumers.
Today, the Minister said that the carbon tax is expected to cost about an additional 1 per cent of the electricity and gas expenses of all households. He added that eligible households will each receive a $20 increase per year to cover the expected average expenses increase that arises from the tax.
In Budget 2017, the Government increased water prices by a hefty 30 per cent.
The Government expects to generate nearly $1 billion in carbon tax revenue over the first five years. This revenue will be set aside to better support companies to improve energy efficiency.