India’s biodiesel industry wants VAT exemption to promote blending

In India, the country’s biodiesel association is requesting the fuel be exempt of Value Added Tax to boost the industry’s viability. It argues that the tax, that can be up to 24% in some states, applied to the 5% portion blended into fossil diesel will kill demand for the blended fuel entirely. The association’s president argues that a small tax on high speed diesel, the blending program could be funded at no additional cost. States are meant to come forward with a promotional VAT rate to kick off blending but none have done so so far.

Category: Policy