Taxation
1 The Diesel Engine
2 Theory of Vegetable Oil Use as a
Fuel
3 Engine suitability
4 Heating the Oil
5 Biodiesel
6 Micro Emulsions and Blends
7 Vegetable Oil Engine Design
8 Vegetable Oil Furnaces and Heaters
9 Oil Types and Filtering
10 Taxation
11 Implications of Vegetable Oil
Fuel Use
12 Sources
UK Taxation
In July 2002 the UK government passed legislation to give
‘biodiesel’ a 20p reduction in tax compared to
the current rate for ultra low sulphur diesel fuel (ULSD).
The definition of ‘biodiesel’ is:-
To qualify for the new rate of duty or for a repayment,
biodiesel must be diesel quality liquid fuel produced from
biomass or vegetable oil (including recovered vegetable oils):
· the total ester content of which is not less than
96.5% by weight; and
· the sulphur content of which does not exceed 0.005%
by weight.
Diesel quality means capable of being used for the same purposes
as heavy oil; and biomass means the vegetable and animal substances
constituting the biodegradable fraction of products, wastes
and residues from agriculture, forestry and related activities;
or industrial and municipal waste. [8]
This can be interpreted to include biodiesel, straight vegetable
oils and at least the vegetable oil part of a blend or micro-emulsion.
HM Customs and Excise have yet to make a solid statement as
to how they interpret the definition.
EU Directive for Biofuel Taxation in Member States
July 2002 was a good month for biofuels. On 2nd July the
European Parliament voted that the mineral oil directive (92/81/EEC)
should be ammended. The amendment report recommended that
pure plant oil should get full tax exemption due to it being
the solution with the best social, environmental and economic
benefits. The report weighed so much in favour that it recommends
that the use of pure plant oil should get additional encouragement.[16]
The proposed amendments are:-
From 1 January 2004 to 31 December 2012, Member States may
exempt or apply a reduced rate of excise duty on all biofuels
or products containing biofuels;
In the case of products containing biofuels, the exemption
or reduced rate may apply only to the biofuels element of
the mixture;
The level of taxation applied on the products may be lower
than the minimum rates specified in the mineral oils rates
Directive 92/82/EEC
Taxation in Germany
June 2002 and the German Parliament have continued with a
progressive policy with regards to the taxation of biofuels.
‘The 2nd Law for Amending the mineral Oil Taxation Law’
was passed giving biofuels a tax exemption until 2008. Germany
leads the world with developments in the use of pure plant
oil fuel and tax incentives are set to encourage further development
of technologies.
1 The Diesel Engine
2 Theory of Vegetable Oil Use as a
Fuel
3 Engine suitability
4 Heating the Oil
5 Biodiesel
6 Micro Emulsions and Blends
7 Vegetable Oil Engine Design
8 Vegetable Oil Furnaces and Heaters
9 Oil Types and Filtering
10 Taxation
11 Implications of Vegetable Oil
Fuel Use
12 Sources
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