Qingdao Municipal State Taxation Bureau:
Your request for instructions on whether to levy consumption tax on biodiesel (No.165 [2006] of the State Administration of Taxation) has been received, and the reply is as follows:
According to the Notes on the Collection Scope of Consumption Tax on Gasoline and Diesel (Guo Shui Fa [1998] No.192), biodiesel produced from animal and vegetable oils through purification, refining, synthesis and other processes does not belong to the scope of consumption tax collection.
CC: State Taxation Bureau of all provinces, autonomous regions, municipalities directly under the Central Government and cities under separate state planning.
State Administration of Taxation (SAT)
Press release issued on 6 December 2006