Excise tax exemptions for biofuels

Source: JOIN IEA/IRENA Policy and Measures Database
Last updated: 4 November 2014

In June 2004, the European Commission approved state aid to biodiesel producers in the form of reduced excise duty for biodiesel containing 31% rapeseed oil methyl ester (RME) by volume, known as SMN 30 or B31 (B for biodiesel and 31 for the percentage of RME). Excise duty was reduced from EUR 306 per 1000 litres for conventional diesel to EUR 211 per 1000 litres for SMN 30. In effect, this meant that the RME contained in the fuel blend was not subject to excise duty. In 2008, an amendment to the act on excise tax exempts pure biofuels from any excise tax. For fuels with a high share of biofuel, the biofuel component is exempt from excise tax, as with the RME component of SMN 30. Thus the excise duty on diesel containing at least 31% biodiesel from RME is CZK 6.866 per litre of blended fuel. The excise duty on common diesel (diesel containing max 5 % rapeseed methyl ester) is CZK 9.95 per litre, thus resulting in a rebate of CZK 3.084 per litre.

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