Taxation of biofuels in Hungary
Keywords: bioenergy, biofuels, ethics, using cereals, taxation
Apparently the status of bioethanol in terms of taxation is more favourable than that of biodiesel. Ethanol sales are growing dynamically. The E85 fuel is currently sold at more than 200 petrol stations in Hungary.
In order to increase the share of “bio” to at least 10% in the transportation sector in Hungary it would appear useful to increase the proportion of the bio component found in fuels first to 6.0% from the current 4.8%, then to 8.0% in another one or two years. As for biodiesel, e.g. B40 – biodiesel with 40% ‘bio’ – the ‘bio’ portion could be exempt from tax, limiting taxation to the remaining diesel component (60%) only.