Biomass to be taxed as fuel

Support for the government’s bill to promote renewable energy is drying up due to concerns that it places a tax on biomass that can be used as fuel.

People who buy material such as wood and straw for non-fuel purposes can apply to have the tax refunded, but only if the amount of the tax paid exceeds 5,000 kroner, and if they can prove it was not used as fuel.

The tax was expected to bring in 2.8 billion kroner annually, and was to be earmarked to fund development of renewable energy sources. 


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