The tax cuts will aid the recovery of the UK’s oil and gas industry and help to secure jobs for the future, Fircroft said. Plans include the effective abolition of Petroleum Revenue Tax and a 10% reduction of the supplementary charge to 10%, backdated to Jan. 1.
This comes at a time when the International Energy Agency reports that the oil price is stabilizing and could even climb in the near future.
Fircroft CEO Johnathan Johnson described the budget changes as “a long-term move to ensure the security of jobs in an industry that has historically added around £25 billion [$36 billion] to the UK’s bottom line every year…
“This is a positive move that can help to support jobs in the North Sea industry, particularly in combination with continued price cuts, the right regulations and, of course, a return to form of the price of Brent Crude.
“We have remained confident that the industry would bounce back contrary to the views of a number of commentators who were openly questioning its future and we’re even more confident about long-term job prosperity now that the government has shown its full support.”
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