Public being ripped off by ‘pitiful’ Shell tax contribution, say campaigners
T
he British public are being “ripped off” by Shell, which made report income of £32 billion final yr whereas paying the equal of 22p per UK citizen in tax, campaigners have mentioned.
In a brand new comedy sketch launched in time for Shell’s AGM on Tuesday, satirist Jolyon Rubenstein pretends to be a consultant of the fictional charity We’re Richer Because You’re Poorer and palms out 22p to members of the British public.
Mr Rubenstein, who is understood for the BBC present The Revolution Will be Televised, teamed up with the environmental NGO Global Witness to mock Shell’s tax contribution.
The clip, filmed in London, exhibits conversations between the comic and the general public about how Shell has paid extra tax in nearly each different nation by which it operates than within the UK.
Speaking to the PA news company earlier than the video’s launch, Mr Rubenstein mentioned: “Britain is being ripped off, we’re being ripped off.
“In 2022, Shell lobbied the Government so hard that according to Transparency International, on an average of one every three working days they were in lobbying meetings in Westminster – 87 lobbying meetings in 252 working days.
“If you look across the board, what you will see is that we’re a laughing stock and I don’t think the British public really realise that.
“Compared to Norway, the United States and Qatar, Shell are getting away with with murder. They’re paying substantively more to all of those countries than they are to Britain.
“Where’s the great in Great Britain here? Why are we doing so badly at taking tax revenue?”
The windfall tax takes the marginal tax price on North Sea oil and gasoline manufacturing to 75%, one of many highest charges globally
Global Witness mentioned the UK ranks nineteenth out of the 25 nations by which Shell operates for the quantity of tax it paid.
In March the corporate introduced it paid £15 million to the UK final yr – £7 million in taxes and an extra £8 million in charges.
It was nonetheless in a position to write down its tax invoice by round £34 million as a result of cash it’s spending within the nation.
In 2021, Shell paid £8.7 million in charges however was handed again £107 million from HM Revenue and Customs and so was left with a unfavorable invoice within the UK of round £98 million.
The £15 million tax invoice from 2022 quantities to 22p per UK citizen, which Global Witness referred to as “pitiful”.
HM Treasury mentioned it doesn’t touch upon the affairs of particular person taxpayers however that it routinely meets stakeholders to debate coverage points.
A spokesperson mentioned: “Through the Energy Profits Levy (EPL) we are ensuring excess energy profits – driven by Putin’s illegal invasion of Ukraine – are being used to ease the pressure on families up and down the country, and are in part enabling us to cover nearly half a typical household’s energy bill up to the end of June.
“The windfall tax takes the marginal tax rate on North Sea oil and gas production to 75%, one of the highest rates globally.
“And, while we work to halve inflation and grow the economy, these funds are being used to provide one of the most generous cost of living packages in the world- worth £94 billion, which is around £3,300 per household this year and last.”
HM Treasury mentioned it solely taxes income made on the UK Continental Shelf and that income made in different oil and gasoline basins will go to different jurisdictions.
Through a tax break within the EPL, oil and gasoline firms can reclaim 91p of each £1 of tax due on oil and gasoline income whether it is reinvested in additional UK North Sea initiatives.
There isn’t any manner morally or frankly simply virtually that British residents ought to have obtained the pitiful sum of simply 22p every from the fossil gas big in taxes final yr
Global Witness mentioned Shell paid greater than £1,000 per citizen in Norway, although there are round 60 million much less folks than within the UK.
Alice Harrison, fossil fuels marketing campaign chief at Global Witness, mentioned: “2022 saw Shell rake in record profits amidst a deep and painful energy crisis that pushed millions of Brits into poverty.
“There is no way morally or frankly just practically that British citizens should have received the pitiful sum of just 22p each from the fossil fuel giant in taxes last year.
“To add insult to injury, our Government continues to hand the oil and gas industry billions of pounds in tax breaks and other subsidies.”
Shell has been contacted for remark.