Australia plans new excise on local biofuels - report

(ADPnews) - Dec 15, 2010 - The government of Australia plans to impose an excise tax on locally produced biofuels, which would hamper domestic clean fuels industry if introduced, The Australian reported this weekend.

The excise is scheduled to take effect on July 1, 2011.

According to the publication, the excise would have a dire impact on domestic production of ethanol and biodiesel and the export of biofuels.

The introduction of the excise could have an adverse effect on mandate for biofuel blends at states and territories level as imports of foreign, subsidised biofuels will turn out cheaper than local production.

"Australia permits the importation of products while Australian product cannot be exported to other countries at an economically viable level", the Biofuels Association of Australia says in its submission to the federal review.

The introduction of the new tax should be postponed until 2016, if Australia aims to become a competitive biofuels exporter, the daily suggests.

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