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B.C. Creates Fuel Tax Exemption

VICTORIA, B.C. - The province of B.C. is offering fuel tax exemptions for fleets and individuals that use biodiesel and ethanol-blended fuels.


VICTORIA, B.C. – The province of B.C. is offering fuel tax exemptions for fleets and individuals that use biodiesel and ethanol-blended fuels.

Beginning July 1 the ethanol and biodiesel portions of fuel will be exempt from the provincial motor fuel tax in an effort to promote the environmentally-friendly fuels.

Ethanol is created from organic materials such as corn and grain and biodiesel is made from vegetable oils and animal fats. The tax exemptions will apply to blends of up to 25 per cent ethanol or 50 per cent biodiesel.

“This expanded exemption will help offset the higher costs of these ethanol and biodiesel blends and make them more competitive with conventional fuels,” said Finance Minister, Gary Collins. “It will promote the use of these fuels and stimulate the development of production facilities in British Columbia as more people choose alternative fuels.”

Currently Canadian Biofuels is attempting to localize production of biodiesel in the Lower Mainland of B.C., which would also result in decreased cost for users.

“B.C. has taken a leadership role in Canada by supporting renewable fuels with this tax exemption,”said Mike Boyd, projects director for WISE Energy Co-op in Victoria.

A number of municipalities in the Lower Mainland have completed a pilot project using biodiesel and they say they will continue to use it when the cost becomes more competitive. That decision will likely be reinforced with the province’s announcement. There are already plans to produce biodiesel domestically. Visit www.gov.bc.ca/rev for more information.


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