Sweden moves to follow Germany and Norway in scrapping biofuels tax exemption Back to news search
11 May 2010The Swedish Audit Office has released plans to conduct a review of the current tax exemption scheme for biofuels such as ethanol and biodiesel. The outcome of the review is due for publication in 2011. According to a report (by ENDS) the very high consumption by Swedish drivers of ethanol means the annual cost of the scheme to the Government is around €210m.
The German Government took the decision to scrap the tax break on biofuels in Germany in 2006. The European Court of Justice later backed the decision, stating that it did not infringe European taxation laws.
At the end of 2009 Norway announced plans to scrap a tax exemption for biodiesel, joining a growing number of countries taking the view that users of biofuels should pay for them rather than taxpayers.
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