Gushan Environmental Energy suspends production at Fujian Gushan
Chinese bioenergy producer Gushan Environmental Energy has announced the temporary suspension of production at its subsidiary Fujian Gushan Biodiesel Energy following a dispute with a local tax authority concerning consumption tax issues.
In January consumption tax rates on diesel products were levied, but Gushan has appealed to the State Administration of Taxation of Fujian Province Fujian SAT that its biodiesel, produced from used cooking oil, vegetable oil offal and jatropha oil, should not be subject to the consumption tax.
Gushan has claimed that biodiesel products without petroleum-based diesel content should be specifically excluded from paying the consumption tax.
Fujian Gushan currently has an annual production capacity of 100,000 tonnes and accounted for approximately 29.4% of Gushan's current annual biodiesel production capacity of 340,000 tonnes and a similar percentage of Gushan's total sales for the first quarter of 2009.
The company stated that the suspension of production will mean the temporary reallocation of Fujian Gushan's employees to Gushan's other plants and is liaising with all of its suppliers and customers to discuss options for the delivery of raw materials to, or the collection of biodiesel products from, Gushan's other plants.
In January consumption tax rates on diesel products were levied, but Gushan has appealed to the State Administration of Taxation of Fujian Province Fujian SAT that its biodiesel, produced from used cooking oil, vegetable oil offal and jatropha oil, should not be subject to the consumption tax.
Gushan has claimed that biodiesel products without petroleum-based diesel content should be specifically excluded from paying the consumption tax.
Fujian Gushan currently has an annual production capacity of 100,000 tonnes and accounted for approximately 29.4% of Gushan's current annual biodiesel production capacity of 340,000 tonnes and a similar percentage of Gushan's total sales for the first quarter of 2009.
The company stated that the suspension of production will mean the temporary reallocation of Fujian Gushan's employees to Gushan's other plants and is liaising with all of its suppliers and customers to discuss options for the delivery of raw materials to, or the collection of biodiesel products from, Gushan's other plants.
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