Fuels are generally subject to the mineral oil tax. Biofuels (as for instance biogas, bioethanol, biodiesel, vegetable and animal oils) may currently profit - if the ecological and social requirements are met - from a full tax relief (depending on the product up to 75 cents per litre). Thereby environmentally compatible biofuels are fiscally promoted. The current tax relief provisions are limited by law until 31th December 2030.
The fiscal measures shall be neutral for the federal budget which is why the reduction of revenues is compensated with a higher taxation of petrol.The tax relief on biofuels is only granted, if the domestic manufacturer or importer, in their request to the Directorate General of Customs (DGC), has provided evidence, that the fuels comply with the ecological and social requirements.
