Rules

General

Taxes

Licence

Taxation of fuel

The rules for taxation of ethanol fuel are rather unclear. There is a parliamentary resolution from Nov.1997, which states that through the dispensation procedure, bio alcohols are free from tax regarding carbon dioxide and energy tax in the so-called pilot project. The tax relief is granted in the first stage till year 2003 and after that it can be granted for a further period of two or three years if the situation does not change dramatically. An example is if petrol prices increase, tax reductions are not required for ethanol to be price competitive. Agro ethanol has got tax relief for its plant in Norrköping according to these guidelines.

For the present, the companies that sell E85 and low blends in petrol and diesel pay a tax of 90 öre per litre of ethanol.
Ethanol used in converted diesel engines, mostly in buses, has been exempted from tax since 1985 when the project was initiated.

Until the EU parliament has decided for long term rules the tax regulation in Sweden will probably be prolonged.