THE Finance Ministry has retroactively exempted consumption tax on pure biodiesel made from waste animal fats or vegetable oils, and will refund taxes already paid over the past two years.
The policy was backdated to Jan. 1, 2009, the ministry said in a statement on its Web site late Friday .
It would make the production of biodiesel cheaper by 900 yuan per ton, it said.
The move was aimed at boosting the renewable resources sector, easing demand for petroleum and protecting the ecological environment, the ministry said in a statement.
It would make biodiesel producers more competitive in the fuel sector and help ensure waste edible oils were not reused for human consumption, it said.
China aims to produce 2 million tons of biodiesel by 2020 and almost all its current facilities use waste cooking oil. China s major biodiesel producers include Gushan Environmental Energy Ltd. and China Biodiesel International Holding Co. Ltd.
(SD-Agencies)
