31 December 2013 08:52 [Source: ICIS news]
SINGAPORE (ICIS)--China will start levying consumption tax on biodiesel imports except BD100 from 1 January 2014, China Customs announced on Tuesday.
BD100 means biodiesel that contains 100% of biofuel.
The tax rate will be yuan (CNY) 0.80/litre ($0.13/litre), equal to that imposed on regular diesel, according to the statement.
Under the current rule, imported diesel containing 3-30% of biofuel can be declared as biodiesel or biodiesel mixtures and they are exempted from consumption tax.
With a saving of approximately CNY940/tonne from the tax exemption, importers are moving in a huge volume of biodiesel into China this year to make profits, according to industry sources.
As a result, it takes some of the market share of regular diesel because the imported cargoes, containing just 3% of biofuel in many cases, can be easily blended into regular diesel and flow to petroleum stations, the sources said.
($1 = CNY6.06)
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