Australia removes fuel tax exemption

By | September 01, 2002
Australian Prime Minister John Howard said this month the nation's government will remove the fuel tax exemption on ethanol and offer a short-term subsidy to domestic producers. Howard said the move toward greater use of biofuels is designed to encourage sustainable energy sources for fuel in the future. The measure is the latest in the coalition government's attempts to revitalize the sugar industry. The prime minister said that an excise tax of 38.14 Australian cents per liter will be imposed on ethanol used in petrol, which is line with the current excise applying to petrol. The government will provide a matching subsidy of 38.14 cents a liter to Australian producers of ethanol used in petrol.