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North Sea oil and gas companies came under fire yesterday when the Chancellor increased windfall tax.
The so-called energy profits tax will rise from 35 percent to 38 percent starting next month, raising the overall tax rate for producers to 78 percent.
The tariff, which was introduced by the Conservatives in response to soaring energy prices following Russia’s invasion of Ukraine, will be extended until 2030.
Oil crunch: The so-called energy profit tax will be increased from 35% to 38% starting next month, raising the overall tax rate for producers to 78%
And Rachel Reeves removed the investment subsidy, which allows companies to offset taxes on reinvested capital.
A spokesman for North Sea oil and gas company Serica Energy said the level of taxation was “fundamentally inadequate” and does not “reflect that the unexpected conditions have long ended”.
Harbor Energy, the UK’s largest oil and gas producer, said: ‘Energy profits tax creates an extraordinary tax environment without corresponding extraordinary prices.
“We urge the Government to review the tax regime well before 2030.”
Maurizio Carulli, an analyst at wealth manager Quilter Cheviot, said the changes would “hinder investments made by energy companies.”
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