The Globe and Mail reports in its Monday, Sept. 30, edition that Petronas chief executive officer Shamsul Abbas has not yet totally given up on British Columbian
liquefied natural gas. A Globe editorial says Mr. Abbas arrived in B.C. on Friday,
having expressed his displeasure with the province's government on Thursday. The Globe says Mr. Abbas may have a legitimate point.
The provincial government is planning to table a bill this year
that would establish a special income tax on liquefied natural gas.
That would be on top of regular corporate income tax and the
companies' payment of royalties for use of a province's underlying
natural resources.
The Globe says the current plan, for an extra tax specific to
one industry, does not seem like a good precedent.
Mr. Abbas would not have come to Canada at all, nor would he
have spoken out prior to his visit, if he was not interested in building
an LNG business in B.C., opines The Globe. The paper says this looks like negotiation via media. However, in the process, Mr. Abbas raises some good questions. The Globe says the B.C. government
needs to answer them with the right policy.
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