LONDON -- Industry association Oil & Gas UK has discussed Britain’s proposed petroleum tax changes with Chancellor of the Exchequer George Osborne.
CEO Malcolm Webb said: “Oil & Gas UK engaged with the Chancellor and Economic Secretary to the Treasury in a wide-ranging discussion about the implementation and impacts of the tax increase, including the higher supplementary charge on corporation tax and the resultant 81% tax rate on mature fields.
“In particular, the discussion focused on the impact on gas production and the UK’s energy security, decommissioning, infrastructure, employment in the supply chain, and the international competitiveness of the province.
“Notwithstanding the Chancellor’s requirement to raise money, Oil & Gas UK explained why both the unexpected nature and the scale of the increase to between 62% and 81% has damaged investor confidence and will hamper investment, maximum recovery of the UK’s oil and gas, and job creation.
“Disappointingly, the Chancellor has a different view.”
Webb added that the Treasury suggested further discussion on new or further field allowances. The Chancellor also requested dialogue on the issues concerning decommissioning, to be concluded by next year’s UK Budget.
UK operators air tax grievances