North Sea tax rates rise with oil prices

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The UK government has increased the level of tax on North Sea oil production. In his Budget on April 17, chancellor Gordon Brown introduced a 10% “supplementary charge” on North Sea profits, which effectively raises tax on the region’s production to 40% from 30%.

The UK Treasury estimates that this hike will net the government more than £1.00 billion ($1.45 billion) over the next three years.

Political analysts say Brown had wanted to increase the tax on oil and gas production two years ago,