Swedish tax exemption of biomethane approved until 2020

The European Commission has approved the Swedish full exemption from carbon tax of biomethane as a fuel until the end of 2020. Tax exemption or tax credit of other sustainable biofuels has been approved until the end of 2018.

“It is very welcomed news and I am pleased that the intensive dialogue which the government has brought the European Commission has produced results. Now we know biofuels companies as regards the coming years and the government can put all our energy to develop sustainable rules for by 2018,” said Finance Minister Magdalena Andersson.

The European Commission considers that the tax exemption in its entirety is an operating aid under the European Union law regarding state aid. State aid must be approved by the Commission in order to apply.

The government’s goal is, during the mandate period, to have rules in place that provide long-term sustainable and stable conditions for biofuels as quickly as possible. The Swedish government had applied for an extension of state aid approval for exemption in February 2015.

https://www.ngvjournal.com/swedish-tax-exemption-of-biomethane-approved-until-2020/