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UK Slaps 25% Windfall Tax on Profits of Oil and Gas Firms (2)

May 26, 2022, 1:25 PM

Boris Johnson’s government will impose a windfall tax on the profits of oil and gas companies, bowing to mounting pressure to support Britons facing a record squeeze on living standards.

The 25% levy on energy firms will raise about £5 billion ($6.3 billion) to finance one-off grants of £650 to more than 8 million of the poorest households in the UK, Chancellor of the Exchequer Rishi Sunak said in the House of Commons on Thursday. Sunak did not rule out applying a similar levy to power generators, but said more work needs to be done on the idea.

WATCH: Rishi Sunak introduces a new tax on energy firms.
Source: Bloomberg