July 2002 - Nr. 7
Bundestag to Make Bio-Fuels Tax-Free
TWIG - In an effort to help more Germans tap the potential of renewable energy sources, the Bundestag decided to exempt all fuels based on biomass from the federal fuel tax. Fuels made from vegetable oils already enjoy tax-free status in Germany. The new regulation will extend that exemption to other bio-fuels, such as methane and gasoline derived from plant and animal solids. The wider tax exemption, proposed by the federal government and approved by the Bundestag’s committee for finance, environment and economics, will be introduced as an amendment to Germany’s general mineral oil tax law. Two additional amendments have also been approved for the law. One of them would release highly efficient natural gas and steam-turbine power plants from the obligation to pay taxes on the natural gas they use, as an incentive for the development of environmentally sound energy operations. The other change would increase the amount of solar power eligible for financial support from the government from 350 megawatts to 1,000 megawatts, thus opening the way for further investment in this sector.
