Following the dramatic decline of the price of oil in the past few months, North Sea oil and gas companies will be offered tax cuts by the Chancellor in order to avoid withdrawal of investment and production.
Industry body Oil & Gas UK has insisted that a tax cut of as much as 30 percent is required in order to straighten up the unfriendly and outdated tax structure to one which is suiting to the needs of today. At current the basic tax levy is 60 percent but that this can increase to 80 percent for established oil fields.
Chancellor George Osborne has said that whilst he cannot pre-empt the March Budget, he implied that there may be “further reductions in the burden of tax on investment in the North Sea”. It is hoped that such tax cuts will not only protect the UK’s ability to provide oil, but also the thousands of jobs the oil industry currently provides.
The importance of a substantial tax cut cannot be underestimated with the current situation, Mike Tholen, the economics director at Oil and Gas UK has reported that “if we don’t get an immediate 10 percent cut, then that will be the death knell for the industry.” He went on to say that a 10 percent cut would be only the beginning and that this should be followed by a further 20 percent reduction later on in order to encourage investment.
Despite the troubles that have been faced by the industry in recent times, we believe that a turnaround is soon on the cards and this tax adjustment could be the catalyst the industry needs.
For the latest news releases please follow us on twitter: @BlueprintOnG.
Vacancies By Email
Get There First With Vacancies By Email
Get specific job types, tailored to your requirements, sent straight to your inbox as soon as they are available. Register Now »
Latest Oil & Gas Jobs
We have an excellent opportunity for a Pipelay Lead to join the Methods Department with our client, a leading oil & gas company based in Greater London. Our client provides drilling, engineering, procurement and pipeline services to the Oil & Gas sector.
Read More »
Our client- a highly respected consultancy within the Oil and Gas sector- is seeking a Project Quality Engineer to work with them on a permanent basis.
Our client is a highly respected consultancy which has established a worldwide reputation
Read More »
We are seeking an experienced Materials Engineer for a global firm on a contract basis in Greater London. Our client delivers expert services to Government, Technology, Hydrocarbon sectors and Oil & Gas EPC. With a portfolio that includes some of the worl
Read More »