PBR05: GT hits out at oil tax change
Firm accuses government of targeting oil company 'deep pockets'
Grant Thornton has accused the government of targeting the ‘deep pockets’ of
oil companies following bumper profits after raising the supplementary tax on
North Sea oil profits from 10% to 20% in the pre-Budget report.
Stephen Quest, tax partner at Grant Thornton said: ‘The Exchequer predicts
this higher level of tax will lead to an extra £2.2bn. This is more punitive
than a one-off windfall tax. As it constitutes a structural change, it will
affect the whole industry going forward regardless of the price of a barrel of
oil and investment is likely to be hit. The oil companies are likely to take a
dim view of this change.’
The firm also said the chancellor’s proposals for a planning gains supplement
would ‘stifle development’.