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Government scraps duty on biofuel production

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Government scraps duty on biofuel production


Published by webmaster for in Environment

Government scraps duty on biofuel production

New Government regulations are about to come into force which will open up the market for biofuel production in the UK.

At present the law requires anyone producing any quantity of a biofuel (mostly biodiesel in the UK) to pay duty of 28.35p on every litre.

Additionally producers must submit returns to HM Revenue & Customs and hold a permit, however, from 30th June 2007 the following changes come into force:

- A production threshold of 2,500 litres per annum below which producers will not need to submit returns or pay duty, and

- A reduction in the frequency of returns for all but the largest producers (defined as those producing over 450,000 litres per annum) from monthly to quarterly.

At the present time there are approximately 1,400 producers of Biofuels in the UK, a large proportion of whom produce for their own personal use.

This fundamental change in regulation means that everyone will have the opportunity to produce enough biofuel for their own personal consumption, duty free.

The effectiveness of the 2,500 litre level will be monitored and the Government will consider the scope for raising the threshold a year after its introduction.

The full implications for this legislative change will be discussed and debated in workshops at the Biodiesel-Expo 2007 which will take place at the Newark Showground in Nottinghamshire on 17th and 18th October.

Attendees at the Expo will also be able to meet with over 100 exhibitors a number of whom have solutions for taking advantage of this new legislation.

Geoff Riley, HM Revenue & Customs, who will be at the Expo to take part in the workshops is delighted with the move: "This legislative change will reduce the administrative burden on HM Revenue & Customs as well as small producers and I look forward to explaining it more to attendees at the Biodiesel Expo."

Richard Price, MD Filtertechnik, a supplier to the biodiesel market and sponsor of the Biodiesel-Expo believes biofuel production levels will increase dramatically: "I anticipate this will lead to an explosion of biofuels producers who will create a new "homebrew" market. It is a very exciting time to be in the biofuels business."

The biodiesel market is one of the fastest growing markets in Europe today.

Roger Flynn of Biofuels media insists small home-based producers will flourish: "This is great news for the industry and consumer alike and shows that the Government is committed to developing a grass roots base for the future of biofuels in the UK."

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