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Aid alliance wants no tax relief for biofuels

The Swiss Alliance of Development Organisations, Alliance Sud, has called on the government not to cut tax on biofuels as planned from July 1.

This content was published on May 2, 2008 - 11:26

Alliance Sud said in a statement on Friday that encouraging the production of fuels from agriculture would boost exports from developing countries to rich countries.

It said there was no justification for this at a time when millions of people were suffering from hunger because of the "enormous" increase in food prices.

Alliance Sud said experts agreed that biofuel production played "no small part" in the current price rises.

In a letter to the government, the development alliance argued that Switzerland should not make a move in the wrong direction and ought to avoid any moves that could worsen the global food situation.

The government decided at the end of January on revised legislation on the taxation of mineral oils, which would exempt fuel based on renewable energy from duty.

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