TAX RATES ON BIO FUELS “ILLOGICAL”

With cost of oil increasing to new high levels, Angus MP Mike Weir, has called upon the Chancellor to review the tax regime for bio fuels and to take more imaginative action on alternative fuels.

Mr Weir is supporting an Early Day Motion which, amongst other moves, calls upon the Chancellor to reconsider his decision to remove tax concessions from bio fuel made from waste cooking oil.

Commenting on the matter Mr Weir said it was vital that we made the most of all low carbon transport fuels.

“The government have announced a target of 5% of all fuels to come from renewable sources by 2010, yet at the same time the Chancellor has removed tax concessions that would have allowed the production of fuel from waste vegetable oil.

“This is an extremely short sighted move that will undermine the viability of this pioneering form of road fuel.  It is widely used, for example, in Malta and could provide a significant boost to efforts to reduce carbon emissions from road transports. “