UK to Lose Out on Millions Due to Tax Loophole For Fracking Firms
The UK budget will
lose out on millions of pounds in tax returns from companies exploring
for shale gas, an influential environment watchdog said Wednesday.
MOSCOW (Sputnik) — Greenpeace’s Energy Desk found out that the UK
government is giving UK fossil fuel companies investing in fracking tax
breaks in form of enhanced capital allowances that reduce their taxable
"It’s inexcusable that Ministers are treating
fracking firms to a generous tax loophole, whilst denying clean,
renewable energy projects the very same tax breaks," Caroline Lucas, a
Green Party member of parliament, said, commenting on the findings.
Energy Desk cited figures in Treasury documents that suggest a sum
of over $36 million in lost tax revenue over the next four years.
Companies dealing with renewable energy sources, such as wind and solar
power, will not profit from these tax breaks.
This comes two days after authorities in North Yorkshire allowed the
UK company Third Energy to begin hydraulic fracturing for shale gas
in the village of Kirby Misperton, marking the return of fracking to the
United Kingdom after a 5-year hiatus.