CAEPLA BLOG

'The bill for spills': U.S. lawmakers propose tax on oilsands that could cost Canadian oil producers US$665M over ten years

Posted on April 14, 2021

 

The Biden Administration is looking to raise revenue by increasing import taxes on bitumen from Canada.

The levy, expected to generate at least U$665 million, is supposed to fund oil spill clean ups.

The obvious impact will be to make Canadian oil more expensive, potentially slowing production.

 

The bill looks to reverse a 2011 IRS ruling that oilsands crude is not technically considered crude oil and therefore not subject to an excise tax