Backing for Swedish biofuel tax breaks
The European Commission has backed a Swedish request to favour "carbon-dioxide neutral" biofuels through lower taxes. The application was made for a derogation under the EU's 1992 mineral oils directive, which sets minimum tax levels to be applied by member states. Other countries have won similar backing for tax differentials in favour of biofuels (EED 27/03/02). The Commission said the request was in line with EU attempts to increase the share of agricultural biofuels used in road transport (EED 10/06/02). Ministers must still approve the measure. See proposal.