Scotland calls for oil and gas tax reform
16 Mar 2015
The Scottish Cabinet Secretary for Finance, John Swinney, has made a plea to Chancellor George Osborne to overhaul the tax system for oil and gas in the upcoming Budget Statement.
The North Sea oil and gas industry has been the subject of discussion lately, after job cuts and the falling price of oil have ravaged the sector. Westminster has already promised to take action in support of the industry.
Mr Swinney said: ‘For the Budget to provide a credible response to the challenges facing the industry, it must firstly correct the damage done by the unexpected increase in the supplementary charge at the 2011 Budget.
‘The underlying problem is that successive UK governments have placed too much emphasis on maximising the short-term tax take from the industry.
‘This has negatively impacted on business confidence, and undermines the industry’s need for a stable long term fiscal environment on which to base their investment decisions.’
Given the recent concerns, Mr Osborne is expected by many to announce a change in the current tax scheme for the oil industry.