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UK energy windfall tax: what it is and why it needs to change

By İrem Güçeri, Associate Professor of Economics and Public Policy, University of Oxford

The UK government has increased its 25% levy on oil and gas companies – the UK energy profits levy – to 35% from January 2023 as part of its November 17 Autumn statement. The scheme has also been extended by two years to March 2028. Combined with a new 45% windfall tax on the profits of electricity generators, these taxes are predicted to generate £14…

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