What makes you think that it is not due to the FULL rate of fuel taxation ?
Most other fuels are.
In any case, bioethanol is no greener than fossil fuels, and can be expected to be taxed the same. The gov seems to be coming around to the morality problem with bio-fuels...ie: converting food crops to fuel is a no-starter.
You can probably get it imported ok, but the tax will still be the same....
Oh, and just noticed
THIS on aol....another numpty professor.
EDIT: Slightly reduced rates.
Hydrocarbon oils: Introduction of a reduced rate of duty on bioethanol
HMRC Reference: BN CE27/04
Who is likely to be affected?
1. Businesses producing, distributing or importing bioethanol, and those blending or mixing bioethanol with hydrocarbon oils.
General description of the measure
Rate of duty
2. A new rate of duty is being introduced on bioethanol used (or set aside for use) as fuel in any engine, motor or other machinery, or as an additive or extender in any substance so used.
3. The rate will be 28.52 pence per litre. This rate has been set at 20 pence per litre below the prevailing rate for sulphur-free petrol, and will apply to pure bioethanol and to the proportions of bioethanol blended or mixed with hydrocarbon oils.
Definition of bioethanol
4. To qualify for the new rate of duty, bioethanol must be petrol quality liquid fuel consisting of ethanol produced from biomass.
5. Petrol quality means capable of being used for the same purposes as light oil. Biomass means vegetable and animal substances consisting of the biodegradable fraction of products, wastes and residues from agriculture, forestry and related activities, or industrial and municipal waste.
Duty
6. The point at which bioethanol becomes taxable will continue to be the point at which it is used or set aside for use as a fuel for any engine, motor or other machinery, or as an additive or extender in any substance so used.
Blending and mixing
7. Blending of hydrocarbon oil and bioethanol before the duty point for the hydrocarbon oil has passed will be permitted in a tax warehouse where sufficient records are kept to show the proportion of each ingredient in the resultant mixture. The bioethanol duty rate will apply only to the bioethanol part of the blend, including any denaturant.
8. Mixing of bioethanol and hydrocarbon oil after the duty point will be permitted.
9. Where blending or mixing is allowed, there will be no restriction on the proportions of the constituent parts.
Other requirements
10. As bioethanol is an alcohol, businesses producing, distributing or importing bioethanol, and those blending or mixing bioethanol with light oils will need to comply with the requirements of the Alcoholic Liquor Duties Act 1979, Spirits Regulations 1991, and the regulations that govern the denaturing of alcohol, which are currently the Methylated Spirits Regulations 1987.
Operative date
11. The new duty rate will come into effect on 1 January 2005.
Current law and proposed revisions
12. Amendments will be made to the Hydrocarbon Oil Duties Act 1979 by Finance Act 2004. Changes to the administrative arrangements of the tax will be made by secondary legislation.
Further advice
13. Separate Budget Notice CE26 covering the rates of excise duty on hydrocarbon oils has also been published.
14. A Bioethanol notice will be published shortly.
15. If you have any questions about this change, please contact the National Advice Service on 0845 010 9000. Information about all Customs and Excise related Budget Measures is available from the Customs website at
www.hmce.gov.uk.