By Sue-Ann Wayow
REDUCTIONS in the Supplemental Petroleum Tax (SPT) rates announced by Finance Minister Colm Imbert are a positive move in the oil and gas industry.
This is according to the Energy Chamber. It stated in a release on Monday that it welcomed the measures put in place by the Minister of Finance Colm Imbert to improve the fiscal environment under which the upstream energy sector companies operate in Trinidad and Tobago.
The Energy Chamber stated, “The reductions in the Supplemental Petroleum Tax (SPT) rates for new wells in marine fields and the extension and expansion of the changes introduced in 2020 for small onshore producers are welcomed and will help the economics of new investments in oil projects. The Energy Chamber has advocated changes in SPT for over a decade and this change represents the first major adjustment for offshore oil producers. The changes will also help create greater investor interest in the on-going onshore bid round.”
The Chamber also welcomed the commitment from Imbert to meet with the oil and gas industry over the next three months to review further potential reforms to the fiscal regime.
“There are also details of the announced proposals that will be important to clarify, and get right, if we are to meet the objective of encouraging investment in new oil production,” the Energy Chamber stated.
The Chamber also thanked Imbert for collaborative engagement with the organisation toward making those changes.
Imbert during his Budget presentation on Monday listed out several measures for the energy sector.
These included:
- Tax credit for energy companies from 25% to 30%;
- Tiered system for Supplemental Petroleum Tax (SPT) at lower rates for shallow marine operators; and
- Decrease in Petroleum Profit Tax (PPT) from 35% to 30% for companies in deep water exploration.
Imbert said the decreases in taxes should encourage more investment in the energy sector.
