• Service: Tax, Global Indirect Tax, Global Compliance Management Services
  • Type: Regulatory update
  • Date: 10/16/2013

Belgium - EC approves phase-out of biofuel excise tax reductions 

October 16:  The European Commission (EC) today issued a release stating that Belgium’s planned phase-out of excise duty (tax) reductions previously granted to seven biofuel producers was in line with EU state aid rules.

As explained in the EC release, the phase-out of the excise tax reductions is over a 12-month period.

The seven biofuel producers, selected in 2006, will continue to benefit from the excise tax reduction until 30 September 2014 for a limited volume of biofuels. This is intended to allow for a transition to a new biofuel support program, to be launched in 2014.


In 2005, Belgium adopted a biofuel support program, reducing excise taxes for a limited number of biofuel producers, that were selected based on their compliance with certain environmental and economic parameters.

The EC approved this program for a six-year period (expiring 30 September 2013).

In September 2013, Belgium informed the EC that it intended to set up a new program in 2014 to reflect changes in the biofuel market, and that it proposed to extend the initial program only for a short phase-out period of 12 months. The phase-out period is intended to allow Belgium the time needed to set up the new program.

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