New Zealand offers new tax breaks
New Zealand will repeal a requirement for biofuel blends and implement tax breaks on fuels derived from proven sustainable sources instead.
The fuel sale directive, rising to 2.5% of annual sales by 2012, will be revoked under legislation to be voted on later this week, Energy Minister Gerry Brownlee says.
Retailers will continue to sell blended products and the government will prepare tax breaks on fuels cutting the most emissions.
While the target level was reduced to discourage use of fuels sourced from rainforest land or crops, critics say an uneven tax treatment favoured imported ethanol over locally-produced biodiesel.
In New Zealand, grain or milk-based ethanol is exempt from a NZ$0.43 (€0.18) a litre tax imposed on petrol, about 30% of the pump price.
Biodiesel, usually made from animal fat or natural oils, has no tax advantage over the conventional product.
The fuel sale directive, rising to 2.5% of annual sales by 2012, will be revoked under legislation to be voted on later this week, Energy Minister Gerry Brownlee says.
Retailers will continue to sell blended products and the government will prepare tax breaks on fuels cutting the most emissions.
While the target level was reduced to discourage use of fuels sourced from rainforest land or crops, critics say an uneven tax treatment favoured imported ethanol over locally-produced biodiesel.
In New Zealand, grain or milk-based ethanol is exempt from a NZ$0.43 (€0.18) a litre tax imposed on petrol, about 30% of the pump price.
Biodiesel, usually made from animal fat or natural oils, has no tax advantage over the conventional product.
Loading ...
