Windfall Taxes Will Stifle Oil Industry Investments | OilPrice.com

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Windfall taxes have suddenly become quite popular. With oil and gas companies reaping record profits from the rally in energy commodity prices, governments have been unable to resist the temptation to skim a bit more of these profits.

As the energy crisis triggered a cost-of-living crisis governments around the world have turned to windfall taxes on the oil industry to raise funds.

Plenty of energy companies have been complaining about the losses and warning of falling investments, while others are suing governments. Yet while it seems like an easy way to find some extra money to spend on helping businesses and households survive the cost-of-living crisis, windfall taxes are tricky because they discourage investments.

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