India to cut GST on ethanol to 5% from 18% to boost demand

In India, Bloomberg reports the government has cut the goods and services tax on ethanol to 5% from 18% in an effort to boost demand and reduce fossil fuel imports. A report in June from NITI Aayog and the Ministry of Petroleum and Natural Gas already signaled that tax cuts to boost demand could be considered. The government recently agreed to increase the price of ethanol produced from different sugarcane-based feedstocks while oil marketing companies have been accused by sugar mills of favoring corn-based ethanol in procurement.