Scotland calls for 'simpler' oil and gas tax regime

Scotland calls for 'simpler' oil and gas tax regime

by Big Mac

oil-well

The Scottish Government is calling on the UK Government to focus on boosting investment and simplifying the tax rules for the oil and gas industry.
It set out proposals for a “well-designed investment allowance that would simplify the fiscal regime and signal to global investors the North Sea is open for business”.
The call comes as the UK Government’s consultation on investment for the oil and gas sector closed yesterday.
Scottish Energy Minister Fergus Ewing said his government has proposed a fiscal regime “that is underpinned by the principles of simplicity, stability and flexibility”.
Mr Ewing added: “The oil and gas industry makes a substantial contribution to the Scottish economy and the UK public finances. However, it is increasingly clear that the oil and gas fiscal regime has become overly complex, burdensome and uncompetitive.
“The paper also outlines how a well-designed investment allowance could help to address many of the underlying challenges in the North Sea, such as declining exploration activity and low production efficiency.”
A report by industry body Oil & Gas UK said the sector has been badly hit as a result of rising costs, taxes and “inadequate regulation”.