UK's CONSERVATIVE Government
to hit oil and gas companies with $6 billion windfall tax!
London (CNN Business)
The UK's CONSERVATIVE government is introducing a £5 billion ($6.3 billion) tax on the windfall profits of its oil and gas companies, bowing to pressure from campaigners to raise money to help millions of people struggling with the worst cost-of-living crisis in decades.
Finance Minister Rishi Sunak unveiled the new 25% tax on the profits of energy producers such as BP (BP) and Shell (RDSA) on Thursday. The levy will be phased out once oil and gas prices fall back to more normal levels, he said.
"The oil and gas sector is making extraordinary profits,
not as the result of recent changes, risk-taking or innovation
or efficiency, but as the result of surging global commodity prices,"
Sunak said in a speech to parliament.
The tax will help fund a new package of benefits worth about £15 billion ($19 billion).
Around eight million low-income households will receive £650 in two installments later this year, while a further eight million pensioners will receive £300.
Companies including BP and Shell raked in a combined $32 billion in profit last year on the back of soaring global oil and natural gas prices. Russia's invasion of Ukraine in February pushed prices up even further over fears the conflict will lead to energy shortages.
Hot Forum Topics
