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Higher Windfall Taxes Risks Energy Project Investments: Brindex

OIL

The Association of British Independent Exploration Companies (Brindex) has sent a letter to Jeremy Hunt warning him that an increase in windfall taxes would hinder the sector’s appetite and financial ability to invest in new projects, according to the Financial Times.

• In the letter the group states that the EPL has “already created long-lasting fiscal uncertainty and elevated the UK to one of the most fiscally unstable and complex regimes to do business in”, according to the FT.

• In early November, the British government announced plans to increase the existing windfall tax on energy companies by 5% to 30%.

• A decision on the extension is expected at the latest by 17 November, when the country’s Autumn Statement is due.

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