Fears of tax precedent
WOULD a windfall tax on energy firms set a dangerous precedent for British industry?
Under new proposals by the Government, energy firms would effectively be forced to subsidise residents’ utility bills by paying additional tax.
The money would be used to help poorer families pay their bills this winter.
But Anthony Platts, divisional director at investment manager Brewin Dolphin’s Teesside’s office, believes the move could set a precedent for the imposition of similar taxes on other sectors.
He said: “They are impractical and not very well thought out.
“Companies already have to pay tax at the pumps as well as corporation tax.
“There are social welfare arrangements in place for residents who may be struggling to pay their fuel bills.”
Business organisations claim a windfall tax would cause long-term damage to UK energy supplies.
The CBI said energy firms were under pressure to make “enormous” investment to ensure Britain’s energy supply during the next decade.
But others are angered that the biggest energy firms are raking in profits while homeowners bear the brunt of rising fuel bills.
Shell and Centrica have both announced multi-million pound profits.
