UK hits oil and gas companies with $6 billion windfall tax

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The UK government is introducing a £5 billion ($6.3 billion) tax on the windfall profits of its oil and gas companies

London The UK government is introducing a £5 billion tax on the windfall profits of its oil and gas companies, bowing to pressure from campaigners to raise money to help millions of people struggling with the worst cost-of-living crisis in decades.

Finance Minister Rishi Sunak unveiled the new 25% tax on the profits of energy producers such as BP and Shell on Thursday. The levy will be phased out once oil and gas prices fall back to more normal levels, he said. "The oil and gas sector is making extraordinary profits, not as the result of recent changes, risk-taking or innovation or efficiency, but as the result of surging global commodity prices," Sunak said in a speech to parliament.

 

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