TAX INCENTIVES FOR BIO-DIESEL

Motion Text

That this House welcomes the announcement from the Department of Transport requiring five per cent. of all UK fuel sold on UK forecourts to come from a renewable source by 2010; notes that the Government currently supports bio-fuels through a 20 pence per litre duty incentive, which has stimulated sales of around 10 million litres a month, about 0.25 per cent. of all road fuel sales; and calls on the Treasury to reconsider the recent decision by HM Revenue and Customs to withdraw tax concessions from bio-diesel made from waste cooking oil, as this process is equally valid as other forms of producing bio-diesel, and the removal of these tax concessions is threatening the viability of small firms who have done excellent pioneering work in this field.