British Petroleum Tax Research (1975-1987)

Petroleum tax regimes1975-1987have a very important position in the history of UK petroleum tax. Under the1970’s two Oil Shocks and the international oil price continued attacked, The UK tax regimes not only regulated the oil supply-demand balance and the petroleum industry structure, but also safeguarded the sustainable exploitation of the oil resources of UK. At the same time,the country obtained a large number of revenue.Petroleum revenue tax was introduced in1975, and it marks the establishment of the UK petroleum tax regimes. In1987the abolition of Advance petroleum revenue tax indicated UK petroleum tax system tends to stabling. During the1975-1987, a number of taxes of emerged, and the main taxes rate also were constantly changed. The determinants of UK petroleum tax were domestic and international environment, North Sea petroleum industry, the Oil Shock and the international oil price. These factors gave rise to a sensitive reaction of the UK petroleum tax system.In view of this, this text attempts to elaborate the UK petroleum tax system and the influence factor, and then makes the appraisal to UK petroleum taxation system. Thereby get a more comprehensive understanding of UK petroleum taxation system, so as to provide some salutary lesson for petroleum tax system of our country.This paper mainly discusses the following four parts:The first part discusses UK petroleum resources and the before1975UK petroleum tax. Firstly introduces the UK petroleum resources and license. UK petroleum resource is very dificient before North Sea oil was found, and it needed relies heavily on imported petroleum. In1973, Oil Shock prompted to speed up the vigorous development of North Sea petroleum industry, which also provides the conditions for the formation of UK petroleum tax system.The second part discusses the major oil taxes in the1975-1987periods. This part elaborate evolution of Royalties, Corporate tax, Petroleum revenue tax, Supplementary Petroleum Duty and Advance petroleum revenue tax. and then it discusses the tax base, tax rate and relief. In1975, Petroleum revenue tax was introduced and it marks the establishment of the UK petroleum tax system. UK petroleum taxation in the next ten years was adjusted and changed frequently. To1987petroleum tax system turn to be mature and stable, so that the UK North Sea oil industry production reached its peak in the90’s under the regulation of the this tax system.The third part mainly discusses the main factors affecting the UK petroleum taxation. I will mainly discuss the following four factors of influence on UK petroleum Tax, the British environment at home and abroad, the development of North Sea petroleum industry, the Oil Shock and the international oil prices. Although, UK government directly operates the petroleum tax, essentially above-mentioned four factors are leading role. Therefore, it need in detail elaborated. and so wo can get a more in-depth and comprehensive understanding of British Petroleum tax.The fourth part analysis the advantages and disadvantages of UK petroleum tax. The characteristic of UK petroleum taxation (1975-1987) is flexibility. On the one hand, it achieved a lot. It mkes contribution to the UK financial subsidy and the adjustment of North Sea petroleum industry.And on the other hand, some problems still exist. The UK petroleum tax was too heavy, and the taxes and rates changed frequently.The last part is the summary of the paper. This paper sums up experiences and lessons in order to gain enlightenment.