With the current recession, Government are proposing a freeze on the introduction of bio-fuel taxation increase to the same rate as diesel from 2010 to 2011.
Environmental groups have also entered the fray by demanding this tax is not raised at all for ALL BIO-FUELS, irrespective of what fuel it is. They are appealing for bio-diesel which is above 20% bio element to be duty free, and those who manufacture their own bio-diesel; using a prescribed processing unit should have higher allowances.
They are calling for the current 2500 litres per annum to be raised to 5000 litres per vehicle, and anything above 5000 litres to be taxed the same as red or so called low duty diesel.
Their ethos is that it will encourage the use of such fuels by farmers, plant operators, boaters, etc; by not costing anymore than their current fuels. Vehicle operators will gain a significant savings, fleet operators operating HGV's will make considerable savings in fuel costs, and even the smallest diesel engined cars will benefit. Emissions from all diesel engined cars will be considerably reduced, and encourage the major fuel companies to manufacture and distribute these fuels to fleet operators with their own storage tanks. Kick starting and producing these cheap fuel alternatives will increase the choice of higher bio element fuels at the pumps, and those vehicles which are capable of operating on these higher mixes will be encouraged to do so. These vehicles are the newer vehicles, such as company cars and vans, such savings will ensure company vehicle drivers will be forced by companies, to use them.