B.C.91裸聊视频檚 tax rate on new natural gas investments was 31.9 per cent in 2018, higher than all other provinces except Saskatchewan, says a new study by University of Calgary economist Jack Mintz.

The detailed tax and resource royalty comparison comes as B.C. prepares for construction of its first liquefied natural gas export facility at Kitimat, entering into the fiercely competitive international market for LNG and pipeline gas.

91裸聊视频淒eveloping B.C.91裸聊视频檚 natural gas resources has been a priority for successive provincial governments, and yet its tax rate on new natural gas investments is highly uncompetitive with neighbouring and competing jurisdictions,91裸聊视频� said Mintz, who calculated the effective tax rates for the Fraser Institute.

The study compares the 91裸聊视频渕arginal effective tax and royalty rate,91裸聊视频� including corporate income taxes, sales taxes on capital purchases, capital taxes, transfer taxes, profit-based resource levies and royalties on natural gas and oil.

The calculations found B.C.91裸聊视频檚 overall tax and royalty rate is second highest in Canada, nearly five percentage points higher than the Canadian average of petroleum-producing provinces, Alberta, B.C., Saskatchewan, Newfoundland and Labrador and Nova Scotia. It also compared the 10 highest producing U.S. states, Alaska, Arkansas, California, Colorado, Kansas, Louisiana, Mississippi, New Mexico, North Dakota, Ohio, Oklahoma, Pennsylvania, Texas, West Virginia and Wyoming.

READ MORE:

READ MORE:

The B.C. NDP government reduced taxes on LNG development in 2018, prompting the Shell-led LNG Canada consortium to green-light their $40 billion investment in an LNG plant and the Coastal Gaslink pipeline from gas fields in the Dawson Creek area to the coast.

Those tax breaks include removal of an LNG income tax from export revenues and an exemption on provincial sales tax for construction.

The study took into account Canadian government changes to accelerate depreciation tax measures for energy investment in November 2018.

tfletcher@blackpress.ca
Like us on and follow us on .