Thursday, 20 February 2014 10:20

Budget speech reveals LNG tax strategy

298 LNG

The Provincial budget speech this week provided an insight to the provincial LNG tax strategy in the form of a two-tiered tax regime. The province proposes a 1.5% tax to be applied when a production facility is up and  running and a second tier of tax which could reach as much as 7.0% once a facility has recouped its capital costs. Legislation to introduce the tax is expected in the fall with regulations and legislation to follow in 2015. Related LNG initiatives included in the budget included $29 million over three years to be spread through the ministries of aboriginal relations, environment, forests and natural gas development to help develop the industry. There is also $9 million over the next three years to support environmental assessment of the impact of LNG developments — facilities, pipelines and mining. Victoria has set an objective of having three LNG terminals in operation by 2020, the first by 2017.

Read 2223 times Last modified on Friday, 21 February 2014 12:19
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