ACP warns that wealth tax from the economic emergency would affect investment in the energy sector
Electric energy Photo: Nikola Johnny Mirkovic Z - Unsplash
TL;DR
- The ACP expressed concerns about a proposed wealth tax on legal entities, with a differential rate for the mining-energy sector.
- The association believes this tax could negatively affect investment and competitiveness.
- Unlike income tax, wealth tax applies to accumulated assets regardless of profits, potentially impacting company liquidity.
- The ACP highlighted that the oil and gas sector operates on long-term investment cycles, and taxing wealth essentially taxes investment capacity.
- The proposed tax changes should be evaluated for their impact on future investment, reserve replacement, production sustainability, employment, royalties, and energy security.
- The ACP questioned the technical basis of differentiated tax rates regarding tax equity and regulatory stability in a competitive international market.
- The sector already contributes significantly through income tax, royalties, and other taxes, historically funding national and regional development.