China exempted consumption taxes on biogasoil produced from waste animal fats or vegetable oils, according to the Ministry of Finance and the State Administration of Taxation.
The new policy is effective from Jan 1, 2009 and taxes already paid will be refunded, the MOF said in an announcement on its website on Dec 24.
The move is aimed at boosting the renewable resources sector, easing demand for petroleum and protecting the ecological environment, the announcement said.
It would also guide biogasoil producers to use waste grease or jatropha curcas oil as feedstock, market sources pointed out.
Consumption taxes on biogasoil made from edible oils like bean oil and palm oil, etc. were not exempted.
The policy would not influence production of CNOOC's biogasoil plant in South China's Hainan Province, which has used waste grease as feedstock but paid no consumption taxes, according to a source with the plant. The plant is the first large-scale biogasoil project in China, capable of producing 60,000mt per year of biogasoil with jatropha curcas oil as major feedstock.
Hainan Province started to exclusively supply B5 biogasoil from Dec 8.
B5 biogasoil is basically a blend of 95% regular petroleum-based gasoil and 5% biogasoil.
China stated to impose consumption taxes on biogasoil from December 2008, which is Yuan 0.8/liter, flat with petrol gasoil.
The new policy is effective from Jan 1, 2009 and taxes already paid will be refunded, the MOF said in an announcement on its website on Dec 24.
The move is aimed at boosting the renewable resources sector, easing demand for petroleum and protecting the ecological environment, the announcement said.
It would also guide biogasoil producers to use waste grease or jatropha curcas oil as feedstock, market sources pointed out.
Consumption taxes on biogasoil made from edible oils like bean oil and palm oil, etc. were not exempted.
The policy would not influence production of CNOOC's biogasoil plant in South China's Hainan Province, which has used waste grease as feedstock but paid no consumption taxes, according to a source with the plant. The plant is the first large-scale biogasoil project in China, capable of producing 60,000mt per year of biogasoil with jatropha curcas oil as major feedstock.
Hainan Province started to exclusively supply B5 biogasoil from Dec 8.
B5 biogasoil is basically a blend of 95% regular petroleum-based gasoil and 5% biogasoil.
China stated to impose consumption taxes on biogasoil from December 2008, which is Yuan 0.8/liter, flat with petrol gasoil.
