In a major boost for the biofuel sector, China decided to exempt taxes on pure biodiesel from waste animal fats and vegetable oils. Its new policy was actually retroactive from 1 January 2009, with taxes that had already been paid refunded, according to the Ministry of Finance and the State Administration of Taxation. The move was aimed at lifting the renewable resources sector while easing demand for petroleum and protecting the ecological environment. It was also expected to save biodiesel producers around 900 Yuan per tonne. It is hoped that biodiesel pro­ducers will now be more competitive in the fuel sector and this should help to guard against waste edible oils being reused for human consumption so as to ensure food safety.

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