Tax on Irish blended biofuels to be cut
In Ireland, the government is thought to be putting a stop to taxes applied to regularly consumed biofuels by changing the carbon tax legislation.
The Department of Communications, Energy and Natural Resources has confirmed that tax on biofuels is being revised.
While pure biofuels are not taxed, mixed fuels containing less than 10% biofuel are. The most common biofuel blends, containing somewhere between 4% and 7% biodiesel, are taxed by approximately 4.5% for every litre purchased from a filling station.
The managing director of Green Biofuels Ireland, Nick Tierney, said he is hoping that the tax changes do take place. He believes that fuel blends with more than 4% biofuel content should not be subjected to the carbon tax.
Tierney goes on to explain how the alteration to the carbon tax legislation would relate to Ireland’s biofuels obligation that requires fuel suppliers to include an average of 4% biofuels in their annual sales, starting from July 2010.
However, not everyone agrees with this tax amendment. The European Biodiesel Board, the Irish Biodiesel Association and the Irish Bioenergy Association all believe the decision to end the carbon tax on common blends with a biofuel content of less than 10% to be a mistake.
The Department of Communications, Energy and Natural Resources has confirmed that tax on biofuels is being revised.
While pure biofuels are not taxed, mixed fuels containing less than 10% biofuel are. The most common biofuel blends, containing somewhere between 4% and 7% biodiesel, are taxed by approximately 4.5% for every litre purchased from a filling station.
The managing director of Green Biofuels Ireland, Nick Tierney, said he is hoping that the tax changes do take place. He believes that fuel blends with more than 4% biofuel content should not be subjected to the carbon tax.
Tierney goes on to explain how the alteration to the carbon tax legislation would relate to Ireland’s biofuels obligation that requires fuel suppliers to include an average of 4% biofuels in their annual sales, starting from July 2010.
However, not everyone agrees with this tax amendment. The European Biodiesel Board, the Irish Biodiesel Association and the Irish Bioenergy Association all believe the decision to end the carbon tax on common blends with a biofuel content of less than 10% to be a mistake.
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