Biodiesel to be taxed in Germany
When the government taxes you, you know you got its attention.In what must be a mixed blessing to German supporters of alternative fuels, the German government has reached an agreement to impose a 9 eurocents (about 11.4 U.S. cents) tax per litre of biodiesel. A 15 eurocents (19.1 cents) per litre tax will be imposed on blended fuels. Vegetable oil will continue to remain tax-free.
The agreement was reached after strong debate between the conservative and Social Democrat parties. Previously, biodiesel had been exempt from taxation. But with rising fuel prices, many Germans switched from regular diesel, which is a source of revenue for the government. Biodiesel consumption nearly doubled from 2004 to 2005.
[Source: Reuters via Planet Ark]
Reader Comments (Page 1 of 1)
chalacuna 8:59AM (6/02/2006)
yaiks!! this is a big slap on the face for the advocates of renewable energy and altertive fuels.
has the lawmakers gone crazy to approve this into law? how can we prosper in the utilization of cleaner fuel when the government is not supportive on the movement and cause. or is there any lobbying on the oil produing companies so that biodiesel will not be able to be competitive against oil prices.
we must plan for the future, please make reconsiderations on this one. wish to more from your site!
Alternative Fuels
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Phil L. 9:00AM (6/02/2006)
Important rule to remember:
Uncle Sam *always* gets his share.
Government will create breaks to achieve some sort of goal - but never to its own (sometimes perceived) detriment.
For example, this helps explain why Oregon *raised* the taxes on hybrid cars: They quickly realized hybrid cars wouldn't supply as much fuel tax income, and decided to make up for it in the registration process.
Uncle Sam *always* gets his share.
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