The French parliament voted in favor of an additional tax on non-sustainable palm oil and other oils, intended for "food products for human consumption", a report from the French parliament said Thursday.
The additional tax of Eur90/mt ($101.50/mt) on palm oil will be introduced in stages, starting at Eur30/mt in 2017, the French parliament decided Friday.
Imports of palm oil for use as feedstock for PME biodiesel are exempted from this new tax rule due to the stringent rules on European biodiesel volumes that need to be sustainable and compliant with the Renewable Energy Directive (RED) legislation.
The decision comes as part of the wider french biodiversity project, initiated by the French green party.
The initial proposed tax on palm oil stood much higher, starting at Eur300/mt in 2017, Eur500/mt in 2018, Eur700/mt in 2019 and Eur900/mt from 2020 onwards. However, the French parliament finally decided on an additional tax of Eur90/mt on Thursday.
On Friday, French lawmakers decided on a softer implementation of the new tax system, starting at Eur30/mt in 2017 and Eur90/mt in 2020, rather than a direct jump to Eur90/mt tax in 2017.
The levy will now be reviewed by the French Senate, which will decided on its faith in May or June. If accepted, the new tax will be introduced in 2017 and will be added on top of the existing Eur104/mt tax.
