A new provision, which will give effect to a new profit resource rent tax on oil and gas production, has been welcomed by the Irish Natural Resources Minister.

Section 41 of the finance bill - the profit resource rent tax - will operate on a graded basis, from five to 15%, depending on availability. It will be in addition to the 25% corporate tax currently employed.

One the most profitable fields, therefore, the return to the State will increase from 25% to 40%.

-- Advertisement --

Welcoming the legislative provision for the new tax Minister, Minister Ryan said: "The objective behind this new tax was to boost Exchequer returns from commercial discoveries off our shores, while at the same time maintaining Ireland’s attractiveness for such exploration.

"I believe that this tax strikes such a balance. I am encouraged by the number of applications my Department has received for exploration licences in the Porcupine Basin. Successful exploration will reduce our long term dependence on imported energy and enhance the security of our own supply."

The Minister concluded by saying it is only Irish people should benefit from the profits the resources will generate.

(JM)