Transposition of Biofuels Directive 2003/30/EC - Mineral Oil Tax Revision/Fuel Ordice Amendment 2009

The EU Biofuels Directive provides indicative targets for the use of biofuels in the transport sector. In November 2004, the directive was transposed into Austrian law through an amendment to the Fuel Ordice. This amendment stipulates that all companies that put fuels in circulation must, from 1 October 2005, replace 2.5% of the total energy quantity put in circulation with biofuels. From 2007, this percentage increased to 4.3%, and in 2008, the target of 5.75% has been achieved, two years in advance with respect to the EU deadline. The latest amendment of the Fuel Ordice, which defines the maximum share of biodiesel as of 7%, took place in 2009. The use of biofuels is done in Austria primarily through blending of biodiesel with diesel (since October 2005) and blending of bioethanol with petrol (since October 2007). Together with the amendment to the Fuel Ordice, the Mineral Oil Act has been revised to provide for tax concessions for fuels with a biofuel share of at least 6.6% for diesel and 4.6% for petrol. To be able to profit from the tax concessions, the fuel must also be sulphur-free (less than 10 mg sulphur per kg of fuel). The use of pure biofuels is completely exempt from tax.

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