Sweden Proposed EU to Remove Tax on Ethanol

Swedish Trade Minister has suggested the European Union (EU) to remove import tax on ethanol due to the increasing demand for renewable fuels including ethanol based fuels towards a cleaner environment on July 9, 2007.
The EU has set a target that biofuels are to make up 10 percent of the transport fuel supply by 2020 but the tax value imposed is currently between 40 and 75 percent, depending on the price of ethanol.
“It seems inconsistent to prevent imports of cost-effective ethanol at a time when the EU is trying to expand use of this fuel,” Tolgfors said.
Since the demand for biodiesel and ethanol is likely to increase, a larger number of producing countries was also needed.
“In a longer time of frame, second generation cellulose-based ethanol production is likely to make European ethanol production more effective, and so competitive on the world market.”
Currently on a world tour to promote the creation of a world market for biofuels, Tolgfors described Indonesia and Malaysia, both of which are planning on production of ethanol in the future, as having great potential.

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