What Fossil Fuel Subsidies, Catherine?
By Paul Homewood
Professor Catherine Mitchell
As I mentioned earlier, Catherine Mitchell’s letter to the Telegraph stated that fossil fuels are subsidised. As the article she was referring to was specifically about the UK, we can only assume that her reply also referred to the UK. (If it does not, she is guilty of gross deception).
It is time therefore to remind ourselves just how much taxes are paid from the production/use of fossil fuels.
Below is the summary from the OBR for tax receipts for 2014/15, as estimated last June. The items below specifically relate to the fossil fuel sector:
|North Sea Oil – Corp Tax/PRT||2.2|
|Climate Change Levy||1.5|
Of course, all businesses pay Corporation Tax, but as I pointed out last year, North Sea Oil operators pay considerably more as a proportion of profits, up to 75%, compared with the standard rate of 20%.
|Pre 1993||Post 1993|
|Profit after PRT||£50||£100|
|Net Profit after Tax||£25||£50|
Even with North Sea revenues depressed because of low oil prices, the Treasury is still raking in £30 billion a year, and would certainly struggle to replace this income if we all switched away from fossil fuels.