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UK imposes 25% energy windfall tax to help households as bills surge

It is the second emergency policy intervention to help with rising bills this year

British Prime Minister Boris Johnson with his Indian counterpart Narendra Modi (unseen) speaks during the joint statement after their meeting, in New Delhi, Friday, April 22  2022. (PTI)
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British Prime Minister Boris Johnson with his Indian counterpart Narendra Modi (unseen) speaks during the joint statement after their meeting, in New Delhi, Friday, April 22 2022. (PTI)

Reuters
Britain announced a 25 per cent windfall tax on oil and gas producers’ profits on Thursday, alongside a 15 billion pound ($18.9 billion) package of support for households struggling to meet soaring energy bills.

The move, which will give each UK household a 400 pound disco­unt on their energy bill and more for lowest-income households, marks a change of heart for Prime Minister Boris Johnson’s government which had previously resisted windfall taxes, calling them a deterrent to investment.

It is the second emergency policy intervention to help with rising bills this year.

Facing intense political pressure to provide more support for billpayers coping

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First Published: May 27 2022 | 12:49 AM IST

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