The UK will scrap windfall tax on energy firms if prices keep falling | CNN Business

The country’s finance ministry announced Friday that it would repeal the 35% additional tax on firms’ profits if the average price of oil and gas fell to, or below, $71.40 per barrel for oil and £0.54 per therm for gas. That would bring down the overall tax rate for energy producers from 75% to 40% — its level before the extra levy was introduced last year in response to surging commodity prices.

Help with energy bills In May 2022, the government introduced a 25% windfall tax on the profits of oil and gas producers operating in the North Sea, upping the levy to 35% six months later. The tax helped subsidize the energy bills for millions of UK households and businesses after they soared following Russia’s full-scale invasion of Ukraine.

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