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| Irish Govt Reviewing Biofuel Tax |
by Robert Lee, Tax-News.com, London
Wednesday, February 10, 2010
Ireland's Department of Communications,
Energy and Natural Resources has indicated that it is reviewing the tax treatment
of fuel sources that contain biofuel to remove disincentives to the production
of less pure fuel blends. Under Ireland’s new carbon tax, fuels that contain
less than 10% biofuel attract a tax of around 4.5%.
Producers in support of the amendment asked the government to revise the law to take into
account that the most common biofuel blends contain between 4% and 7% biofuel,
and are currently taxed at the same rate as those made entirely from unsustainable
sources.
The Managing Director of Green Biofuels Ireland, Nick Tierney, has said that
the current tax treatment of less pure biofuel mixes will remove incentives
for producers helping Ireland to achieve lower carbon emissions, and is hopeful
that the government will exempt fuels which contain more than 4% biofuel content.
Tierney noted that this would tally with Irish producers’ obligation to
have an average of 4% biofuels in their fuel annual sales, starting from July 2010.
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