Irish government to increase oil and gas taxation

The Irish government is to significantly increase the maximum rate of tax on oil and gas production. The new petroleum production tax unveiled in the Finance Bill will see the maximum rate of tax levied on companies producing on Irish oil and gas fields in the future from 40% to 55%. Announcing the Bill, Minister for Finance Michael Noonan said the purpose of the measure ‘is to ensure that discoveries made under future exploration licences will result in an increased financial return to the state and at an earlier point in time’.