Economy

China exempts consumption taxes on biodiesel

(Xinhua)
Updated: 2010-12-25 16:46

BEIJING - China exempted consumption taxes on pure biodiesel made from waste animal fats or vegetable oils, according to the Ministry of Finance (MOF) and the State Administration of Taxation.

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The new policy is effective from January 1, 2009 and taxes already paid will be refunded, the MOF said in an announcement on its website Friday.

The move is aimed at boosting the renewable resources sector, easing demand for petroleum and protecting the ecological environment, the announcement said.

The move is expected to save biodiesel producers about 900 yuan ($135.14) per tonne.

It is expected to make the biodiesel producers more competitive in the fuel sector and guard against waste edible oils being reused for human consumption so to ensure food safety, the announcement said.