Biomass content of biodiesel exempted from excise tax

Malta opted for the former mode of promotion and the biomass content (i.e. the percentage element) in biodiesel was exempted from the payment of excise duty. This made biodiesel cheaper than petroleum diesel retailed in filling stations and therefore the fiscal incentive provided one of the driving forces for the biodiesel sales. In 2011 the policy for substitution obligation was adopted and the biomass content in biodiesel was no longer exempt.

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