Thursday 21 April 2011

Trade body worries over oil and gas tax rise

Industry representatives have continued talks with the Treasury about oil and gas tax increases.

Oil and Gas UK met with Chancellor George Osborne and theEconomic Secretary to the Treasury to discuss the implementation and impacts of the tax increases in the recent Budget.

Malcolm Webb, the trade body's Chief Executive said: "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 per cent tax 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."

The Treasury has asked to continue discussions with Oil & Gas UK on key topics such as how to improve the operation of the trigger price mechanism, and issues around decommissioning.