B.C. Government Releases LNG Tax Proposal

The Globe and Mail reports that the British Columbia (B.C.) government released its proposed budget yesterday, which includes an initial tax rate of 1.5% on net income from LNG export terminals.  According to the report, the tax rate will increase to as high as 7% once companies recover the capital costs of building the terminals.  The article states that some independent consultants believe the tax is competitive with those of Australia and the United States, and the Canadian Association of Petroleum Producers said the proposed tax “appears to be workable.”  Legislation to implement the tax is expected to be introduced in the Fall, 2014.

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