The Father of the Philippine Biofuels Bill called on the biofuel sector to plant their feedstock only on marginal land and not to encroach on land being used to plant food crops. Aside from this, he also encouraged a ban on planting biofuels in arable and irrigated land. He suggested as well to plant biofuels in denuded mountain land. This he said in last week’s Biofuels World Conference held in the City of Makati.
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The Philippine Biofuel Act of 2006 gives a lot of incentives via tax breaks and priority loan packages to biofuel producers and directly related industries. Specific Tax on the biofuel is zero while it is also exempted from the imposition of a 12% Value Added Tax. Waste from distilleries has been classified as “reuse” and will therefore not be required to pay wastewater charges.

These incentives are great to getting the biofuel industry of the Philippines on its feet, what has been said to be overlooked however are incentives to the consumers of these biofuels. These are through the means of cheap cars which are highly compatible to run on an even higher mixture of biofuels.
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