Press Release: Commission approves UK reduction of excise duty in favour of bioethanol used for road transport

The European Commission approved on 3 February 2004 the United Kingdom scheme introducing a reduced rate of excise duty on bioethanol used for road transport. The excise duty reduction shall take effect from January 2005 and last until 31 December 2010. The Commission and the Council since 1985 have consistently encouraged the development of renewable energies, especially biofuels. In this respect, numerous Community measures, among others the White Paper of 1997 on renewable energies and the Council directive on energy taxation adopted in 2003 have been promulgated. The 2003 Council Directive allows for tax reductions and exemptions for biofuels.