China exempts biodiesel from consumption tax

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. The new policy is effective from January 1, 2009 and taxes already paid will be refunded, the MOF said. The move is aimed at boosting the renewable resources sector, easing demand for petroleum products and protecting the environment, the announcement said. The move is expected to save biodiesel producers about 900 yuan (US$136) per ton. It is expected to make biodiesel producers more competitive in the fuel sector, as well as discourage the use of waste edible oils for human consumption for food safety reasons. (December 29, 2010)