Federal Government cuts taxes on LNG facilities

first_img“Our government is committed to providing the right conditions so that industries and businesses can succeed and compete in the global economy by lowering taxes, cutting red tape and encouraging entrepreneurship,” writes Prime Minister Stephen Harper.This tax relief will be available for LNG assets acquired after February 19, 2015 and before 2026, according to a report from the Prime Minister’s desk.“Through our ambitious trade agenda, we are opening new markets for Canadian businesses and developing the infrastructure to transport Canadian products to new markets, which is essential for Canada’s future prosperity and security,” writes Prime Minister Harper.- Advertisement -The Canadian Association of Petroleum Producers (CAPP) recently proposed the federal government reclassify LNG export plants as manufacturing assets, which would have authorized LNG proponents to write off 30 – 50 per cent of capital investment per year.According to the Prime Minister’s report, Canada has large reserves of natural gas but limited means of supplying it to international and domestic markets.The International Energy Agency expects global LNG trade to rise by 40 per cent between 2013 and 2019, with demand in Asia representing half of the world’s needs.Advertisementlast_img read more