Tuesday 29 September, 2020

bpTT seeks "much more clarity" on tax reform measures

Oil and gas production company bpTT is seeking clarity from Government on measures outlined in the national budget and its impact on the energy sector.

During his budget presentation on Monday, Finance Minister Colm Imbert announced that over the last 3 years, total revenue from all sources in the energy sector dropped from $28 billion in 2014 to $9 billion in 2017, a loss of annual revenue of almost $20 billion from that sector alone.

He said as such, a 12.5 percent royalty rate would now be applicable across the board on the extraction of all gas, condensate, and oil.

In response, bpTT said it needs "much more clarity" on the details of these measures and their impact.

The oil giant said it will “continue to work with the Government with the expectations that the changes to the fiscal regime will preserve the competitiveness of the local energy sector and provide the stability and predictability required to underpin long-term investments.”

The company said it has been in discussions with the Finance Ministry on proposals to tax reforms but said it will reserve comment until further measures are announced.

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