UK windfall tax on oil and gasoline firms to boost $6.3 billion

UK windfall tax on oil and gas companies to raise $6.3 billion

CNN Business

The UK government is introducing a £5 billion ($6.3 billion) tax on the windfall profits of its oil and gas companies, bowing to pressure from campaigners to raise money to help millions of people struggling with the worst cost-of-living crisis in decades.

Finance Minister Rishi Sunak unveiled the new 25% tax on the profits of energy producers such as BP

(BP) and Shell

(RDSA) on Thursday. The levy will be phased out once oil and gas prices fall back to more normal levels, he said.

“The oil and gas sector is making extraordinary profits, not as the result of recent changes, risk-taking or innovation or efficiency, but as the result of surging global commodity prices,” Sunak said in a speech to parliament.

The tax will help fund a new package of benefits worth about £15…