ANNOUNCEMENT 10 Jul 2019

The Government of British Columbia imposed a new, targeted fee-in-lieu of manufacturing for exported logs harvested from a coastal BC Timber Sales licence.

 

NUMBER OF INTERVENTIONS

1

  • 1 harmful
  • 0 neutral
  • 0 liberalising
Inception date: 31 Jul 2019 | Removal date: 31 Jul 2024

Export tax

On July 10, 2019 the Government of British Columbia announced a new, targeted fee-in-lieu of manufacturing for exported logs harvested from a coastal BC Timber Sales licence. The fee will be in effect for five years, starting July 31, 2019.

The purpose of this export tax is to encourage the processing of logs in the province. Minister of Forests, Lands, Natural Resource Operations and Rural Development Doug Donaldson stated that,

British Columbians believe that B.C. workers and the communities they live in should be first in line to benefit from our natural resources, and for too long government policies encouraged exporting logs even when there were local mills that couldn’t get access to fibre. This change will give B.C. mills more opportunity to get the fibre they need.

The announcement did not state a uniform precise level of the fee-in-lieu, noting only that it will be dependent on the economics of individual stands. “Stands containing high-value species and that are easily accessible will have a higher fee than stands with low-value species that are remote and difficult to access.” Other data suggest that in most cases it will be Can.$1 (76 U.S. cents) per cubic meter.

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