Germany, Ireland announce biofuels tax changes
Tue 02 May 2006
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From August 1, Germany's current tax incentives on transport biofuels are to be scrapped and replaced with minimum requirements for levels of biofuels blended with petrol and diesel the country's finance ministry has confirmed.
ENDS reports that under the ministry's plan, a €0.10 tax would apply to each litre of pure biodiesel and a €0.15 tax to each litre of biofuel mixed in petrol. At the same time, the transport sector will be required to increase reliance on biofuels, in line with an EU target for all member states to secure a 5.75% share for biofuels by 2010.
The ministry said the move was necessary following a recent EU report indicating that Germany had been over-subsidising biofuels.
Meanwhile, Ireland's finance ministry has announced €105m in tax relief for transport biofuels over the next three years under the 2006 national budget. The measure, requiring EU approval, is intended to help Ireland reach a 2% biofuels share by 2008.
Other budget allocations include €65m in grants to boost biofuels, combined heat and power, biomass commercial heaters and domestic renewable heat.
Related Links
Germany - News Story (via Reuters)
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