27 December 2010 08:49 [Source: ICIS news]
SHANGHAI (ICIS)--China has scrapped the consumption tax on biodiesel in a bid to promote renewable energy development and ease the current shortage in crude, the Ministry of Finance said on Monday.
The ministry has backdated the effectivity of the new tax policy to 1 January 2009, it said in a newsletter posted on the ministry website.
The tax was imposed on pure biodiesel, which is made from the waste grease of animals and plants.
With the scrapping of the tax, production cost for biodiesel would be reduced by yuan (CNY) 900/tonne ($136/tonne), boosting the industry's market competitiveness, the ministry said.
Producers who had already paid the consumption tax would be refunded accordingly, the ministry added.
($1 = CNY6.63)
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