Excise Tax Exemption for Bio-Diesel Fuel

Country	Canada
Year Implemented	2003
Policy Status	Ended
Agency	•Finance Canada
Policy Target	•Bioenergy   •Biofuels for Transport
Policy Sector	•Transport
Description	Budget 2003 proposes that the ethanol or methanol portion of blended diesel fuel be exempted from the federal excise tax on diesel fuel. In addition, it also proposed that bio-diesel, which is produced from biomass or renewable feedstocks, be exempted from the federal excise tax on diesel fuel when used as a motor fuel or blended with a regular diesel fuel. Currently, the federal excise tax is not applied to the ethanol or methanol component of blended gasoline when it has been produced from biomass or renewable feedstocks.
URL	www.fin.gc.ca/
Legal References	2003 Federal Budget