North Sea Oil and Gas firms are already taxed enough


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Victoria Hewson writes for CapX

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Julian Jessop comments for City AM

Andy Mayer comments for City AM

Andy Mayer, IEA Energy Analyst, commented in City AM on calls for North Sea oil and gas companies to pay a windfall tax on the high profits they made as a result of rising energy prices.

“Politicians calling for new windfall taxes on the North Sea mislead the public by ignoring the windfall tax that already exists and the damage done to investment and taxes by previous efforts to raise it.”

“The last time the rate was that high, from 2006-16, it caused a collapse in investment; from £16bn to £4bn a year by 20202. It yielded negative taxes for two years. The Government had to cut the rate and offer allowances to entice companies back.”

“Raising £1.2bn as an election stunt will further put £43bn of pledged investment at risk. This is ‘golden goose’ politics. Every time the North Sea lays an egg, politicians try to kill it with higher taxes, and hide the egg.”

Read the full article here.


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