Biodiesel Competitiveness Plan

Aimed at promoting renewable sources of energy, the Biodiesel Competitiveness Plan establishes an exemption for biodiesel from the Fuel Transfer Tax (equivalent to approximately USD 0.05 per litre diesel) for a period of ten years. It also provides for special arrangements regarding the capital gain tax for investments in biodiesel facilities, with an accelerated repayment for new facilities. Companies engaging in biodiesel production activities are exempt from the minimum capital gain tax as of 1 January 2002. The federal government encourages provinces to adhere to the Plan, and in doing so provincial government are to exempt producers, storage and sales operators of biodiesel from various taxes for a period of ten years. These comprise gross income tax on industrialization and sales, Seals tax and Real Estate tax on biodiesel production and storage facilities.

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