BP (BP.L.) said Tuesday that it expects to pay as much as 1 billion pounds ($1.25 trillion) in taxes in Britain for its 2022 profits. This is despite reporting a large writedown due to exiting Russian businesses.
BP did not disclose how much British tax it paid for 2021. These comments were made amid calls to impose a windfall tax upon energy companies in order to support consumers facing rising fuel prices. BP’s 2020 tax reports revealed that it paid $263 Million in UK taxes that year.
According to the company, it plans to invest as much as 18 billion pounds in Britain by 2030 to produce oil and gas, wind power and other projects.
Reuters was told by Bernard Looney, Chief Executive of BP, that Britain would receive 15%-20% from BP’s global investments budget. This is an increase of about 10%-15%. Just over a quarter would be invested in oil and gas projects.
The record-breaking energy prices in Britain this year have prompted repeated calls by the Labour Party for a windfall tax for North Sea oil and gas producers to pay for assistance for those who are struggling to pay their energy bills.
Anne-Marie Trevelyan (Britain’s Trade Minister) told the BBC Tuesday that a windfall tax was not right. She said it would “strip away profits, which will be reinvested.”
She said that BP could be a leader in demonstrating how this investment will guarantee supply security for us.
