Biodiesel Demand May Rise on Import Tax Cut -Official

By DILIPP NAG
MUMBAI -- The Indian government's decision to cut the import tax on biodiesel in the federal budget will help bring down prices and increase consumption, a senior industry official said Monday.
In the federal budget, Finance Minister Pranab Mukherjee proposed to reduce the basic customs duty on biodiesel to 2.5% from 7.5%.
Biodiesel units are likely to import more and increase their supplies to the market as a result, Sandeep Chaturvedi, president of Biodiesel Association of India, told Dow Jones Newswires.
Mr. Mukherjee also proposed to exempt blended fuels such as petrol or diesel mixed with ethanol or biodiesel from excise tax, a type of tax levied on goods produced within the country.
Until now, only biofuels were exempt from excise tax and not blended fuels.
Write to Dilipp Nag at dilipp.nag@dowjones.com