North Sea tax rates rise with oil prices

The UK government has increased the level of tax on North Sea oil production. In his Budget on April 17, chancellor Gordon Brown introduced a 10% “supplementary charge” on North Sea profits, which effectively raises tax on the region’s production to 40% from 30%.

The UK Treasury estimates that this hike will net the government more than £1.00 billion ($1.45 billion) over the next three years.

Political analysts say Brown had wanted to increase the tax on oil and gas production two years ago