India’s biodiesel industry wants VAT exemption to promote blending

August 11, 2016 |

In India, the country’s biodiesel association is requesting the fuel be exempt of Value Added Tax to boost the industry’s viability. It argues that the tax, that can be up to 24% in some states, applied to the 5% portion blended into fossil diesel will kill demand for the blended fuel entirely. The association’s president argues that a small tax on high speed diesel, the blending program could be funded at no additional cost. States are meant to come forward with a promotional VAT rate to kick off blending but none have done so so far.

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Category: Policy

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