UK moves forward with tax on oil companies that Portugal abdicated
The Portuguese government even waved a tax on the extraordinary profits of oil companies in time of war, but ended up backing down. The UK has just been done with exactly a similar tax
Portugal spoke but did not win advanced, the United Kingdom did not say but created: a tax on the extraordinary profits of oil companies, which more money is this year with the increase in the international price of oil.
The technical name is “windfall tax”, a tax that taxes profits made by companies that benefit from conditions they neither control nor cause.
The economy minister was unable to implement this solution in Portugal a few days later that “theoretically, no measure yet”. On the 19th, an idea of the April tax definitely dropped, “at this time we are not considering it at all”, said António Costa e Silva. The next day, the executive chairman of Gal, who considerably increased profits in the first quarter of this year, the Minister of Economy for not supplementing with the tax.
(Galp earned 155 million euros in the first quarter of the year, six times more than in the same period last year.)
But there was one country where the idea was put into practice.
UK serves oil and gas companies with tax of 5.6 billion
The UK government will introduce a £5 billion tax [5,6 mil milhões de euros] about the windfall profits of oil and gas companies, giving in to pressure from activists to raise money for people struggling with the worst cost-of-lives crisis in decades.
Finance Minister Rishi Sunak on Thursday imposed the new tax on finance like BP and Shell. The fee will be eliminated when oil and gas prices return to more normal levels.
“The oil sector is getting extraordinary results, results of recent changes, risks, innovation or efficiency but as a result of rising prices, results in extraordinary results,” Sunak said in parliament.
The £1000 tax on the financial a new benefits package of around €15 billion (€17.6 million). Sunak stated that the government will make payments to direct families more timely to the country. Around eight million low-income families [764 euros] in two installments later this year, while another eight million pensioners have increased by £300 [352 euros].
Companies like BP and Shell have made a combined profit of $32 billion [quase 30 mil milhões de euros] last year due to rising global oil and natural gas prices. The Invasion of Ukraine in February pushed up prices even further, as a result of the conflict leading to Russia raised energy.
The settings a big blow. On Tuesday the head of the UK’s energy regulator said he expects October’s 40% bill to rise to around 2,800 pounds (about 3.50 euros) from October. That’s just months after the regulator raised its cap price – the most suppliers can charge customers per unit of energy – by just 54%, the increase since it began capping five-year prices.
Energy bills have price increases across the economy. In April, UK consumer price inflation hit 9% – its highest level in 40 years. And since the costs of the standards set for the budget are no longer a responsibility and increase life for the UK.
In February, Sunak gave some money, offering families 200 [235 euros] discount on your energy bills from October, which will be paid in installments over the next few years. On Thursday, Sunak doubled the discount and said nothing would have to be. “This support is now unequivocally offered,” he said.
The Financial Times reported earlier this week that the government is also targeting the profits of large electricity producers and companies such as EDF RWE. But Sunak said more time is needed for his to come up with a plan for the energy sector.
Activists welcomed measures
“Chance heard clearly as concerns that fuels are more accurate, but also general support for CNN,” Simon Francis, Fuel Coalition, told CNN.
Francis added that while the new measures “take the sting out” of recent energy price increases, people in fuel poverty need more reassurance that support will be available in the mean time.