The provincial government proudly announced the tax paid by the LNG industry would be based on seven per cent applied to profits after adjustments for capital costs.
However, due to an industry lobby, the royalty was subsequently reduced to 3.5 per cent pending an increase in the price of gas.
In Norway, regardless of market conditions, the tax charged petroleum companies is based on the country’s 28 per cent standard rate plus an additional 50 per cent of profits for a total of 78 per cent and, apparently, the companies are doing just fine and continue to do business with the country.
By comparison, farms producing beer and wine in the province, a labour intensive and sustainable industry, are charged 50 to 60 per cent based on the retail price of their products.
I believe most informed people would agree something is amiss.
I know the Alberta taxpayer does and they recently voted accordingly.