B.C.’s tax rate on new investments in the natural gas sector is harming the province’s competitiveness, according to a Fraser Institute study released on Tuesday.
The U.S. recently lowered its taxes, which damaged Canada’s previous corporate and investment tax advantage, and B.C. still has the second-highest effective tax rate on new investments despite Ottawa making some changes of its own.
“Developing B.C.’s natural gas resources has been a priority for successive provincial governments, and yet its tax rate on new natural gas investments is highly uncompetitive with neighbouring and competing jurisdictions,” said Jack Mintz, who is the president’s fellow at the University of Calgary’s School of Public Policy and the co-author of the study on tax reform.
B.C.’s tax rate on new natural gas investments is nearly five points higher than the Canadian average of 27 per cent.
“If the B.C. government really wants to grow and develop the province’s natural gas sector,” Mintz said, “policymakers should consider tax reforms to incentive new investments in the industry.”
All BC Biz Stories