Deloitte welcomes oil and gas proposals but calls for urgent action on their implementation
4 December 2014
Commenting on proposed further reform to the taxation of the UK oil & gas industry announced this morning in Aberdeen, Roman Webber, partner and head of oil & gas tax at Deloitte, said:
“In announcing a number of future consultations today, it is clear that the Government has accepted the need for change to the tax regime for North Sea oil and gas if the economic recovery of remaining reserves is to be maximised. In particular, Government has recognised that recent high levels of investment cannot be maintained without fiscal change, and that the overall tax burden, including rates will need to fall as the basin matures. Much of the evidence put forward by industry during the summer has clearly been taken on board. However, many will question whether today’s announcements, and other changes announced in the Autumn Statement, will provide enough immediate support and reassurance to the industry at a time when the oil price has fallen rapidly and companies face decisions about where in the world to invest scarce resources. Both the general election in 2015 and the creation of the new Oil & Gas Authority could delay any concrete measures until at least 2016. In addition it is clear that the current Government’s priority remains deficit reduction and therefore any future changes to the North Sea tax regime will be dictated by what the country can afford by way of financial support. As such this is a step in the right direction but urgent action to implement the encouraging proposals is needed.”
Notes to editors
In this press release references to Deloitte are references to Deloitte LLP, which is among the country's leading professional services firms.
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The information contained in this press release is correct at the time of going to press.
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