Windfall Tax on Energy Firms Not the Right Way Forward - UK's PM Johnson

May 12, 2022

UK Prime Minister Boris Johnson - Image Credit: The UK Government
UK Prime Minister Boris Johnson - Image Credit: The UK Government

British Prime Minister Boris Johnson said on Thursday he did not believe a windfall tax on global energy firms was the right way forward and he wanted to ensure the government did not deter investment by energy companies.

A spike in oil prices due to the war in Ukraine has helped major oil firms book billions of pounds in earnings this year, prompting calls from some politicians for a windfall tax to help families facing cost of living pressures.

"I don't like them. I didn't think they're the right thing. I don’t think they’re the right way forward," LBC Radio quoted Johnson as saying when asked if he would rule out a windfall tax.

"The disadvantage with those sorts of taxes is that they deter investment ... they need to be investing in new technology, in new energy supply."

BP Chief Executive Bernard Looney told the Times last week that the company would go ahead with investment in Britain even if a windfall tax were to be imposed.

Asked about that, Johnson told LBC: "Well, you know, then we'll have to look it."

(Reporting by Muvija M, Editing by Kylie MacLellan)



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