UK not excluding windfall energy revenue tax if investment not planned – minister

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Britain’s Chief Treasury Secretary Simon Clarke walks outside Downing Street in London, Britain March 23, 2022. REUTERS/John Sibley

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LONDON, May 23 (Reuters) – The British government is not ruling out a windfall tax on oil and gas companies if companies fail to invest their profits in capacity expansion soon, the Treasury’s chief secretary said on Monday. Simon Clarke.

The Times reported that the government was drawing up plans for a temporary tax on oil and gas companies, which the opposition Labor Party has been calling for, to help ease the cost of living crisis.

“If we don’t see that investment start to materialize quickly, then obviously the government can’t rule out a windfall tax,” Clarke told Times Radio.

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“We don’t want to have to do that, but if we don’t see the sector reinvesting those profits into something productive for the real economy, then all options are clearly on the table.”

Asked if he could confirm that one option being considered was a more lenient windfall tax on companies committing to invest, Clarke said he could neither confirm nor deny specific proposals. .

“We are obviously looking at what needs to be done to support households in an exceptionally difficult time and a windfall tax is one such option that any responsible government should consider.”

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Reporting by Kylie MacLellan and Farouq Suleiman, editing by Paul Sandle and Elizabeth Piper

Our standards: The Thomson Reuters Trust Principles.

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