Alberta natural gas and oil producers predict their annual taxes will drop by C$85 million ($64 million) thanks to provincial and municipal reductions announced Monday as a response to the Covid-19 andemic.

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The relief program for exploration and production (E&P) companies cuts levies on wells, drilling equipment, pipelines and industrial property for three years. While the reductions continue, government and industry pledge to work on creating a tax regime adapted to changing markets and prices.

“Through extensive consultations with municipalities across the province, Alberta’s government heard loud and clear that now is not the time to make comprehensive changes to the way it assesses oil and gas wells, the machinery and equipment at these wells, and the pipelines...