Biofuel excise reduction adjusted to market prices and pure vegetable oils allowed as farm fuel

Article 49 of the Agricultural Orientation Act amends the Customs Code. The domestic consumption tax reduction for approved biofuels (art. 265 bis A) is adjusted according to agricultural commodity and fossil energy prices, without overcompensating the cost gap with fossil fuels. Farmers may use as farm fuel pure vegetable oil from plants they grew, exempt from the domestic consumption tax (art. 265 ter); the sale of pure vegetable oil for this use and for fishing vessels is allowed from 1 January 2007 (art. 265 quater). The reduced VAT rate on firewood (CGI art. 278 bis 3° bis) is extended to non-household uses.