RE: Ending fossil fuel subsidies is a no-brainer - former Tory MP
March 17, 2012 -BY: Mike De Souza
Canada's oil and gas industry does not receive federal government tax subsidies. In fact, oil and gas activity generated more than $21 billion in taxes, royalties and other revenues for various governments across Canada in 2011.
Oil and gas companies' corporate income tax rate is identical to other Canadian industries, and capital write-off schedules defined by various classes of capital cost allowances are comparable to other Canadian industries. The limited tax credits provided to segments of the oil and gas sector are available to a wide range of other industries.
Canada's oil and gas sector is not subsidized at all. In fact, the sector tends to be more heavily taxed than the non-resource sector, according to a recent study authored by economists Jack Mintz and Ken McKenzie at the University of Calgary's School of Public Policy.
The study, The Myths and Facts of Fossil Fuel Subsidies: A Critique of Existing Studies, describes the Greenpeace-sponsored report from the International Institute for Sustainable Development quoted in this article as "methodologically flawed."
Canada competes globally for oil and gas industry investment capital. A sound, competitive fiscal structure must be maintained to provide a level playing field and continue to attract investment to Canada.
Vice-President, Policy and Environment
Canadian Association of Petroleum Producers
Calgary, Alberta, Canada