The UK on Nov. 17 announced a 10 percentage point increase in the upstream oil and gas windfall tax, known as the energy profits levy, from 2023, taking the headline upstream tax rate to 75% in a move Chancellor Jeremy Hunt described as temporary and not intended to deter investment. In a budget statement, Hunt raised the levy, first introduced in May 2022, from 25% to 35%, also imposing a new 45% tax on electricity generation earnings beyond certain parameters, with both measures taking effect on Jan. 1, 2023. The energy profits levy is to expire on March 31, 2028, in place of a previous plan to consider a phase-out dependent on commodity prices.
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