KIB files protest against Polish biofuel tax cut rate

02 January 2007 13:17  [Source: ICIS news]

PRAGUE (ICIS news)--Poland’s National Biofuel Chamber (KIB) said on Tuesday that it had filed a protest against a finance ministry directive cutting the biodiesel excise tax break at the pump.

The reduction meant consumers would only benefit from Zloty1.00/litre (€0.26/$0.35) compared with the previously proposed Zloty2.20/litre, KIB estimated.

The chamber said the move should be reversed as it could threaten the successful launch of Poland’s biodiesel market.

KBC Securities in Warsaw said the change would result in the discount on the biodiesel retail price compared to the standard diesel price falling from 5.8% to 2.6%.

The equities house said the directive would 'bode for a slower start of the biodiesel market in Poland, resulting in some domestic producers exporting their output (Skotan), while others would probably put on hold their capacity build-up plans (Solvent)'.

($1 = Zloty2.9/€1 = Zloty3.8)

By: Will Conroy
+44 20 8652 3214

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