UK May Levy Windfall Tax If Energy Firms Fail to Reinvest ‘Enormous Profits’: Minister

UK May Levy Windfall Tax If Energy Firms Fail to Reinvest ‘Enormous Profits’: Minister
Chief Secretary to the Treasury Simon Clarke arrives in Downing Street in London on Feb. 21, 2022. Leon Neal/Getty Images
Alexander Zhang
Updated:

The UK government may levy a windfall tax on energy firms if they fail to reinvest their “enormous profits” in domestic energy supplies, a minister has suggested.

The main opposition Labour Party has been calling on the government to bring in a windfall tax on oil and gas producer profits, which would add another 10 percent to the corporation tax on the companies’ profit on top of the 40 percent they have been paying.