The government has announced it will remove the windfall tax on oil and gas companies if energy prices fall to “normal levels.”
The temporary windfall tax was announced last year by then-Chancellor Rishi Sunak to fund a relief package for households struggling with rising bills following Russian President Vladimir Putin’s invasion of Ukraine.
The levy has raised around £2.8 billion to date, but the government said energy companies are cutting back on investment as a result, putting the long-term future of the UK’s domestic supply at risk.
UK Prime Minister Rishi Sunak speaks during a press conference with U.S. President Joe Biden in the East Room of the White House, in Washington, on June 8, 2023. (Madalina Vasiliu/The Epoch Times)
In an announcement on Friday, the Treasury said it will slash the current 75 percent tax on North Sea oil and gas profits back to its regular 40 percent “if prices fall to historically normal levels for a sustained period.”…