Photo of Lee Hsien Loong and Ho Ching from Facebook

Short of money to fund the construction of Terminal 5, the Singapore government has raised the airport tax by S$13.30 per passenger starting 1 July 2018. The Transport Ministry and Civil Aviation Authority of Singapore said today (Feb 28) that passengers who leave from Changi Airport will have to pay S$10.80 more for levy, and an additional S$2.50 for “passenger service and security fees”.

This brings up the total tax to S$47.30 per passenger from the current S$34. Those transiting in Singapore are not spared either, transiting passengers will have to pay S$9 levy for transiting in Singapore.

There is no price tag for Terminal 5, but the multi-billion dollar airport is way unaffordable for even the Singapore government – one of the world’s richest governments.

Singaporeans will have to pay more than S$9 billion in taxes for Terminal 5, while state-owned company Changi Airport Group has to pay S$3.6 billion. The government said they have to borrow more money to fund the Terminal 5.

The move was criticised by the International Air Transport Association which said that it is unfair to pre-fund a facility not in use by paying passengers.