BC to announce tax rate for LNG

Photo: The Canadian Press. All rights reserved.

British Columbia Premier Christy Clark waves at a LNG conference in Vancouver, on May, 21, 2014. The British Columbia government will reveal its anticipated tax rate on the proposed liquefied natural gas industry today. THE CANADIAN PRESS/Jonathan Hayward

The British Columbia government will reveal its anticipated tax rate on the proposed liquefied natural gas industry today.

Provincial Finance Minister Mike de Jong says he can't say much about the proposed law, except that it will be a two-tiered tax recognizing the significant capital investments the industry is making.

He says the government wants to ensure the industry is competitive, while British Columbians are receiving a fair return on the resources they own.

The legislation follows yesterday's announcement by BC Environment Minister Mary Polak on the new rules governing greenhouse-gas emissions for LNG.

Polak says her Greenhouse Gas Industrial Reporting and Control Act will permit companies to purchase carbon offsets and contribute to a technology fund to reach emission benchmarks that will be the lowest in the world.

Earlier this month, the BC LNG Alliance warned the window is closing on the province's trillion-dollar gas dream and it is worried about the industry's global competitiveness.