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The Chancellor proposes to reduce the excise duty on Biobutanol (an alcohol
produced from the fermentation of biomass) from 50.35 to 30.35 pence per
litre. The reduction will apply to Biobutanol used as a road fuel in
specific pilot projects to be individually approved by HM Revenue & Customs.
The measure will take effect 21 days after the associated statutory
instrument is laid before Parliament.
Our view
Biobutanol is a lower carbon emitting substitute for petrol. The reduction
in duty will help to encourage its use and is to be welcomed. |
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