Activist Claim: Leadnow petition calls for Canadian government to add another tax to oil and gas industry claiming they aren’t paying their fair share.
The Facts: Oil and gas companies are projected to pay $48 billion to governments in 2022 – all while continuing to invest in reducing the sector’s emissions and environmental impact
Here are some facts and sources to have a reasonable conversation about oil and gas taxes:
- Canada’s oil and gas royalty and tax regime already provides for windfall taxes on profits. According to RBC, oil and gas companies will pay $48 billion to governments in 2022, a 200% increase from 2021. Royalties and taxes are estimated to reach $64 billion in 2023.
- Canada’s energy industry paid over $505 billion in federal, provincial and local taxes, and royalties, since 2000.
- This year of “windfall” profits follows half a decade of losses. Between 2015 and 2020, the oil and gas industry lost a collective $137.6 billion.
- Not only is the oil and gas industry a major driver of tax and royalty revenue for the government, it is also a major driver for trade. Oil and gas has driven over $1.9 trillion worth of exports and much-needed foreign exchange between 1988 and 2019.
- On average, 44% of the cost of a fill-up will go to government pockets by 2030.
- The federal government is expected to bring in a second carbon tax called the Clean Fuel Standard. This could add up to 13 cents per litre of gas by 2030, in addition to the 40 cents per litre expected from the carbon tax in 2030 at $170 a tonne.
- The Canadian oil and gas industry is the largest funder of cleantech and environmental spending.
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