Polish Bioenergy Sector Wants More Help

WASHINGTON - May 31/07 - SNS -- Tax incentives available to Poland's emerging biofuel sector are not having the desired impact on development of the industry, reports the U.S. agricultural attache for the country.

In 2006, there were great expectations within the industry that government incentives would lead to new investments.

But, previous tax exemptions have not proven attractive enough to the industry and newly announced exemptions most likely will not be sufficient enough to stimulate new investment in biofuel production. As a result, expansion of the biofuel industry may slow significantly and create a situation of over supply of rapeseed.

The Polish government introduced basic biofuel legislation in August 2006 and related tax regulations in January 2007. In response to continued industry complaints that the tax incentives were too small to offset additional costs related to biofuel production, on May 11, 2007, Parliament approved additional tax incentives for biofuel production.

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