The BC Government tabled Bill 6, the Liquefied Natural Gas Income Tax
Act, on October 2, 2014.
Bill 6 sets out the features of the new LNG tax regime. The LNG
taxation proposals have been the subject of great public scrutiny,
ongoing negotiations and political pressure since they were
announced in the 2014 BC Budget. This tax is levied on any taxpayer
involved in "liquefaction activities" at an LNG Facility
in BC. This tax is also in addition to existing federal and
provincial taxes.
In introducing this Bill, B.C. Finance Minister Mike De Jong
used an example of a hypothetical producer that would have paid
approximately $1.5 billion in taxes over 10 years under the earlier
proposals, and stated that the same producer would pay only $800
million under the revised taxing regime in the proposed
legislation.
