The government in the Canadian province of Alberta approved measures late Oct. 25 to increase taxes on oil sands projects. Though the oil sands industry once needed low taxes to thrive, it no longer has to be pampered.
The government of the Canadian province of Alberta approved a raft of measures to increase the tax take from oil sands late Oct. 25. Under the new rules, the tax on extraction before the investment break-even point will rise from 1 percent to 9 percent, and after costs are recouped, the rate will rise from a flat 25 percent to a sliding rate of as much as 40 percent based on the price of oil.