BC’s new LNG tax system still up in the air

Vancouver, BC, Canada / (CKNW AM) AM980

BC’s Premier says nothing’s been finalized yet when it comes to figuring out how much companies operating new natural gas plants will have to pay in taxes, but Christy Clark insists there will be ‘certainty.’

“On all of the taxes. Remember, the federal government levies taxes, municipal governments, provincial governments. The project development agreements are about grinding down all of those numbers, settling on a final number, sticking with it, providing certainty for those companies.’

Earlier this month, Malaysian energy company Petronas was promised a ruling on costs by November 30th.

Petronas plans to spend 11-billion dollars on a new LNG plant near Prince Rupert.

The provincial government is implementing a two-tier regime which involves collecting seven per cent on income from LNG facilities… once capital costs have been recovered.

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