WINNIPEG, Man. — The Manitoba government has eliminated all provincial taxes on Manitoba-produced pure biodiesel in Budget 2006 to further spur development of this clean-energy alternative, announced Dave Chomiak, Minister of Energy, Science and Technology, and Rosann Wowchuk, Minister of Agriculture, Food and Rural Initiatives, in a press release today.

“The elimination of the tax on biodiesel further demonstrates our government’s commitment to find innovative solutions to the issues of climate change and rural economic development,” said Wowchuk.

The removal of these taxes provides an 11.5-cent-per-litre advantage over regular diesel and is in addition to the four-cent-per-litre tax break offered by the federal government. The tax advantage applies to the biofuel (ASTM) portion of biodiesel blends. The announcement more than doubles the 5.5-cent-per-litre biodiesel tax advantage announced as a cornerstone of the province’s biodiesel action plan.

“The expanded biodiesel tax advantage builds on the biodiesel action plan announced in November designed to make biodiesel part of Manitoba’s clean energy plan along with hydro, wind, ethanol and geothermal,” noted Chomiak.

Effective immediately the province will cease to collect both the road tax and provincial sales tax on pure biodiesel that meets the American Society for Testing and Materials (ASTM) fuel-quality standard. The incentive will remain in place for five years to give the industry time to grow.