The Economic Coordination Committee (ECC) of the Cabinet on a Summary, tabled by the Ministry of Water and power regarding use of bio-diesel as an alternative fuel, has allowed exemption of whole of customs duty and sales tax on import of plant, machinery, equipment and specific items used in production of bio-diesel. The aforesaid decision of the ECC has been implemented and Federal Board of Revenue has issued SRO 474(1)/2008 dated the 21st May, 2008, allowing exemption to aforementioned goods used in production of bio-diesel.