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\t\tThe UK government has previously said the windfall tax \u2013 which currently sits at 38 per cent \u2013 would be scrapped in 2030, or potentially earlier if oil and gas firm profits fall below a certain level.\t<\/p>\n
Chancellor Rachel Reeves has been urged to reform the windfall tax in a move that could boost the economy by \u00a3137bn by 2050.<\/p>\n
Ahead of the start of its conference in Aberdeen this week, trade body Offshore Energy UK (OEUK) released a report claiming replacing the energy profits levy next year with a profits-based mechanism could increase investment and output in the North Sea.<\/p>\n
The UK government has previously said the windfall tax \u2013 which currently sits at 38 per cent \u2013 would be scrapped in 2030, or potentially earlier if oil and gas firm profits fall below a certain level.<\/p>\n
The replacement, OEUK has said, would be triggered by \u201cunusually high prices\u201d and would be levied against excess profits.<\/p>\n
According to the body\u2019s chief executive David Whitehouse, a failure to change could result in the oil and gas sector in the UK disappearing \u201cwithin years, not decades\u201d, while the country still relies on fossil fuels for energy.<\/p>\n
\u201cOur paper lays bare the choices facing the Chancellor when it comes to domestic oil and gas taxation.<\/p>\n
\u201cWe are saying reform the energy profits levy to boost national energy production, investment, unlock 23,000 jobs, and add over \u00a3137bn to communities \u2013 or keep the tax, gain short-term revenue, and risk the North Sea industry\u2019s collapse,\u201d he said.<\/p>\n
\u201cWithout changes to the fiscal regime, UK oil and gas could disappear within years, not decades. That\u2019s a risk we cannot take.<\/p>\n
\t\t\t\t\tRead more<\/p>\n