According to a source, British Prime Minister Rishi Sunak and Finance Minister Jeremy Hunt intend to increase windfall taxes on oil and gas corporations in order to generate up to 40 billion pounds over the following five years.
They intend to raise the windfall tax rate for oil and gas businesses from 25% to 30%. According to a report by the UK daily Express, the adjustments are predicted to result in a 50% rise in tax receipts.
The announcement comes days after four of the top five oil producers worldwide announced combined net income of about $50 billion, helped by limited supply around the world and disruption from Moscow’s invasion of Ukraine.
The size of the profits has reignited calls from lawmakers and consumer advocacy groups for the companies to pay higher taxes in order to raise funds to offset the negative effects of rising energy costs on people, businesses, and the economy as a whole.
Under the administration of former Prime Minister Boris Johnson, Sunak enacted a 25% windfall tax on oil and gas producers’ profits in May. This tax was used to pay for a household support package. Oil and gas businesses at the time criticised the move, claiming it would reduce investment and local production.
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