Turpin Tax to Morph into Robin Hood Tax ?28 May 2022 10:08
Operation 'Save Big Dog' threw the 'Dead Cat' Dick Turpin tax on the table. (viewers of HIGNFY will get the analogy).
The Oil companies BP, Shell, etc had earlier signaled that given the circumstances they could accommodate a windfall tax. (Shells 20B$ NS investment plan and Looneys statement that it wouldn't change its NS investment plan). They were in effect saying it's OK to hit us with a windfall tax similar to previous windfall taxes. (1 year, 10% tax, could be offset by tax credits)
What was announced however was not a windfall tax..
The clawback was more than double what even Labour was asking for and at 25%
It was to be a multi-year tax.
There was no offsetting of previous tax loss credits against it.
There was no definition of 'normal oi prices'.
It did, however, contain an allowance for investment underlining the Government's realisation that in the post-Ukraine Europe energy security is critical to a nations well being. (btw it gives me no pleasure to call this crowd of f'wits a Government)
The reaction from the oil companies has been swift. Looney's eaten his words and said BP is reviewing its NS investment plan, Shell 'ditto' and our beloved Enquest has also come out with words to imply that it may switch new investment to Malaysia where it has a 'stable' relationship with the Government there. In summary, the industry is saying to the Government 'you have gone too far and we won't give you what you want (in terms of NS investment) unless you change the proposal'.
I could be wrong but I read this as the Governments, rushed, botched and first stab at legislation that will not pass into law without amendments.
Sign In
Follow the stocks
