BP to Pay $1B Under UK's Windfall Tax

BP expects to pay $1 billion under Britain's windfall tax on the oil and gas sector between May 2022 and April 2023, the company said on Tuesday.

BP paid a total of $650 million in tax in Britain in the first quarter of 2023, of which $300 million came under the Energy Price Levy (EPL), a company spokesperson said after BP reported a $5 billion quarterly profit.

Last year BP paid $700 million under the EPL, bringing the total to $1 billion, it said.

The British government imposed a 25% windfall tax on oil and gas producers last May in the wake of soaring energy prices after Russia's invasion of Ukraine. The government increased the EPL in November to 35%, bringing Britain's total tax rate on the sector to 75%, one of the highest in the world.

The opposition Labour Party, which is markedly ahead of the ruling Conservatives in opinion polls, has said it would raise taxes on the energy sector and axe an investment allowance that enables oil and gas producers to offset a large chunk of the windfall tax.

(Reuters - Reporting by Ron Bousso, Shadia Nasralla and Kylie MacLellanEditing by David Goodman)