UK Government revenue from oil and gas production totalled £6.1 billion for the financial year 2023-24, a drop of £2.9 billion from the previous year.
The decrease is primarily attributed to lower energy prices and reduced oil and gas production, according to a report.
Offshore corporation tax receipts, including Ring Fence Corporation Tax and the Supplementary Charge, decreased significantly from £6.6 billion in 2022-23 to £3 billion in 2023-24.
In contrast, Energy Profits Levy (EPL) receipts rose from £2.6 billion to £3.6 billion.
This increase is due to the full implementation of EPL in the 2023-24 period and the rise in its tax rate from 25% to 35% at the start of 2023.
The report also highlighted that overall tax revenues from the oil and gas sector have fluctuated over recent years, largely driven by global events such as the Covid-19 pandemic and the conflict in Ukraine.
These factors influenced global energy prices, which remained elevated during 2022-23 but eased in 2023-24, contributing to the revenue decline.
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