Singapore’s 2024 Carbon Tax Revenue Falls Short Amid Industry Allowances
Singapore’s carbon duty profit for 2024 is projected to be about$ 642 million, significantly lower than the anticipated$ 1 billion, despite the duty rate having been raised fivefold to$ 25 per tonne. The straight Times reports that while the increase in duty rate was anticipated to induce advanced profit, the factual number fell suddenly due to allowances given to trade- exposed emitters in sectors like chemicals, electronics, and manufacturing.
Allowance Impact on Projected Carbon Tax Revenue
The lower- than- anticipated profit can be largely attributed to the “temporary allowances” handed to companies facing violent transnational competition, particularly in emigrations-heavy diligence. These allowances help alleviate the fiscal burden of the advanced carbon duty rate. Reports suggest that pollutants and petrochemical enterprises entered up to 76 rebates for the duty in 2024 and 2025. With similar rebates, numerous companies are shielded from the full impact of the carbon duty, therefore reducing the anticipated profit collection for 2024. Singapore’s government prophet noted that the duty profit estimate reflects several factors, including projected emigrations, the use of transnational carbon credits, and these allowances.
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Enterprises and unborn protrusions
While Singapore’s carbon duty is aimed at driving decarbonization, experts argue that similar allowances could undermine the duty’s long- term effectiveness in reducing emigrations. Some spectators, like Dr. Kim from the NUS Energy Studies Institute, have raised enterprises that these rebates may weaken the duty’s power to incentivize cleaner practices, as companies may find it cheaper to pay the duty rather than invest in reducing emigrations. Going forward, Singapore needs to precisely balance competitiveness and the effectiveness of its carbon duty programs to ensure the country stays on track with its climate pretensions.
Looking ahead, Singapore plans to raise the carbon duty to$ 45 per tonne in 2026, and it’s anticipated to range between$ 50 and$ 80 per tonne by 2030, marking an ongoing commitment to reducing carbon emigrations.
