China implements tax exemption for biodiesel
The 24 December 2010 saw pure biodiesel derived from waste animal fats or vegetable oils exempt from consumption taxes, following action by China’s Ministry of Finance and State Administration of Taxation.
The tax exemption has been introduced retroactively, effective from 1 January 2009. Consumption taxes paid on biodiesel from this date onwards will be refunded.
It has been estimated that the move will save biodiesel producers around 900 yuan (€102.89) per tonne, increasing competitiveness within the sector.
The introduction of this new policy comes as China aims to boost its renewable energy sector and reduce the demand for fossil fuels. By 2020 China is looking to manufacture 2 million tonnes of biodiesel.
The tax exemption has been introduced retroactively, effective from 1 January 2009. Consumption taxes paid on biodiesel from this date onwards will be refunded.
It has been estimated that the move will save biodiesel producers around 900 yuan (€102.89) per tonne, increasing competitiveness within the sector.
The introduction of this new policy comes as China aims to boost its renewable energy sector and reduce the demand for fossil fuels. By 2020 China is looking to manufacture 2 million tonnes of biodiesel.
Loading ...
