Windfall profits: to tax or not to tax?

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Spiraling oil and gas prices have led to demands for windfall profits taxes in several countries, including the US and UK. The extra income would be used to ease consumers’ financial burden. What are government’s options to tax a windfall? Some proposals target only the largest oil companies – is that fair? How are high oil and gas prices affecting government commitments to end fossil fuel subsidies? Could a windfall profits tax be used to stimulate oil company investment in energy transition projects? Read our insight to find out.

Table of contents

  • Executive summary
  • Sharing the windfall
  • Targeting Big Oil
  • Windfall taxes and the energy transition

Tables and charts

This report includes 6 images and tables including:

  • UK petroleum corporate tax rates 2000-2022
  • Share of revenue under windfall prices
  • Fiscal rates linked to oil price level
  • Marginal vs effective rates: US windfall tax proposal
  • Potential distortion of non-incremental windfall tax
  • BP upstream cash flow 2012-2021: UK contribution

What's included

This report contains:

  • Document

    Windfall profits: to tax or not to tax?

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