The British government raised the sudden tax on the profits of oil and natural gas companies as part of an emergency budget announced today, Thursday, and aims to restore the country’s economic credibility and reform its troubled financial conditions.
“The United Kingdom faces unprecedented unprecedented winds,” said Treasury Secretary, Jeremy Hunt, while unveiling tax increases, and reduced spending in a speech before the House of Commons.
The budget is an attempt to tame the two -numbers inflation, and to curb the increasing deficit.
Hunt said the budget “will address the cost of living crisis, and will rebuild our economy. ”
One of the roads is the sudden tax, which will rise from 25 to 35% from January 2024 to March 2028.
Energy generators will also have to pay a new temporary tax by 45%.
Hunt said that the tax combined will reach 14 billion pounds next year.
Energy companies such as BB and Shell have announced huge profits in the past months, as the Russian war in Ukraine has led to high energy prices all over the world.
The British government faced pressure to increase taxes on oil and gas companies to help finance the support of millions of Britons suffering to meet high energy prices.
Prime Minister Rishi Sonak, the former Treasury Secretary, presented a 25% energy profit tax earlier this year, but that was limited to the profits achieved from oil and gas extraction in the United Kingdom.
After only three weeks in government, the Sonak government faces a challenge to develop the state budget with the help of millions of people suffering from the high cost of living, as the Russian war in Ukraine led to high energy prices and slow economic growth.
Sunak promised in a promotional video clip, broadcast yesterday before Hunt’s statement, “The budget will help achieve the long -term stability that the country needs.
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The emergency budget statement aims to restore the financial and political credibility of the government after the former Prime Minister Liz Terrace announced unprofible tax discounts of 45 billion pounds (53 billion dollars), which led to the bleeding of investor confidence, and the payment of the British pound to low levels against the dollar. American..
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