UK North Sea operators are up in arms over a looming increase in a windfall tax on oil and gas profits that was introduced only four months ago, with the largest industry trade group claiming the rise would force companies to pull investments in new projects and lead to an exodus that would undermine the government's calls for greater energy security. UK Chancellor Jeremy Hunt is preparing to introduce a package of tax increases later this week and looks set to increase from 25 to 35 a surcharge on oil and gas profits put in place earlier this year. The current Energy Profits Act (EPL) Act 2022 raised the tax rate from 40 to 65 but includes an 80 investment allowance that applies equally to fossil fuels or renewable energy and is due to be phased out by the end of 2025. In addition to the new tax hike, Hunt's announcement on Thursday is widely expected to extend the EPL to 2028.
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