B.C. to Introduce LNG Tax Legislation

British Columbia intends to introduce LNG income-tax legislation later this year, Michael de Jong, British Columbia’s Minister of Finance said in a statement on Monday.

The LNG income tax will be a two-tier tax with a tier-one tax rate of 1.5 per cent and a tier-two rate of up to seven per cent, with the final rates to be determined and confirmed in legislation. The LNG income tax will apply to income from liquefaction of natural gas at LNG facilities in British Columbia, according to the minister.

“The B.C. LNG income tax structure and rates are subject to approval of the legislature. Government intends to have legislation ready for introduction by fall 2014, once the complex drafting process is complete. Regulations and additional legislation will follow in 2015,” Michael de Jong said.

“Our LNG income-tax-revenue framework strikes the right balance between the need to maximize the return to British Columbians, while also ensuring B.C. is an attractive and competitive place to develop LNG. The LNG revenue framework will deliver long-term benefits for British Columbia and provide industry with the certainty it requires to be successful,” he added.

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LNG World News Staff, February 19, 2014; Image: Kitimat LNG