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Germany Biodiesel Tax To Increase

10.25.07

According to Berliner Zeitung, the German Finance Minister will propose a $0.12 per liter tax on domestic biodiesel, effective August 1, 2008

The new tax will substantially increase the current tax that is cited by the German biodiesel industry as a prime factor for the slowdown in domestic production.

Plants in Germany are reported to be operating at 40-50% capacity because of high rapeseed costs and domestic taxation. The government will propose mandatory biodiesel usage as a production incentive.



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