Topic: Nations should impose special taxes on oil firms: UN Secretary General - page 3. (Read 373 times)
August 05, 2022, 11:42:41 AM
Sudden change in the tax policy simply because few companies managed to earn more than their previous year is fair? And do you think increasing the tax for the four companies will be benefitable for the other people who is in need? If that much fund needed in reality then why not reduce the fund allocation for their defense an give a small percentage to the people who is in need!
August 05, 2022, 11:18:53 AM
I understand that to tax is to reduce the earning strength of who is in concern so that there is lesser money circulating to avoid increase inflation but if the UN secretary Antonio guteres is making this statement, it doesn't make any much meaning because these companies also have budget for social responsibilities which also goes back to their host countries.
August 05, 2022, 10:58:42 AM
It's a blatant lie that the increased energy prices are caused by corporate greed. The energy companies operate on specific margins that are independent of what the raw materials for the goods they produce are sold at. No matter what the cost of the raw materials, the profit margin on relative terms will stay the same. It seems as if the UN doesn't understand supply and demand, nor recognize the tight energy constrains that were artificially placed on countries who decided it was prudent to ditch oil/gas for greener and less efficient forms of energy.
They got what they asked for. I suppose it's easier to demonize the big oil/gas corporations instead of pointing out that the revitalization of energy in Europe away from fossil fuels, and the dependence on foreign sources, got them in the mess they're in.
They got what they asked for. I suppose it's easier to demonize the big oil/gas corporations instead of pointing out that the revitalization of energy in Europe away from fossil fuels, and the dependence on foreign sources, got them in the mess they're in.
August 05, 2022, 10:19:44 AM
Recently, UN Secretary General Antonio Guterres has called on nations to impose special taxes on oil and gas companies because of this excessive profits and use the funds to support the poorest and most vulnerable people through these difficult times.
Noble thought! It will help governments earn some extra money out of this crisis. But a government needs to understand that these oil companies are mass employers. They must not start firing people to make provisions for this extra tax. Then the result will be negative on economy which is already struggling with high inflation.
Also third world countries can misappropriate such taxes which may not reach to the target mass and can go into the political funding.
August 05, 2022, 10:11:08 AM
Yeah, tax the rich I mean the oil firms and see how they will just increase the price to cover back their loss in tax. After the covid pandemic, I have a strong distrust for all of the UN officials because most of them still keep their seats at the UN but doing a shitshow of it. How about we fire them, reduce the UN contribution then use that money to subsidize fuel/oil prices till Russia and Ukraine war sort out? At best, maybe 6 months from now on till Russia is out of their tanks, supplies, and conscripts. What do you guys think? I think it sounds better than increasing tax on the oil firms.
August 05, 2022, 09:51:40 AM
Imposing "special taxes" won't solve the problem, but the politicians around the world like this "tax the rich" approach, when the crisis strikes.
This is the strategy that goes in the direction of showing the common people that they (politicians) were elected by the people in the elections, actually on the side of the common man. History tells us that this was never true, and that the rich have a very large influence on politicians.
If a massive global recession is coming, the global demand for oil and gas will decrease, which will eventually lead to lowering the oil and gas prices.
Perhaps the new wave of the pandemic in the fall will again cause closures, because the number of infected people has increased by about 300 000 on a daily basis compared to last year. The good news is that the number of dead has decreased significantly compared to the same period last year. Empty roads would certainly affect the price of fuel, but on the other hand, all those people at their homes would use more gas or electricity than they normally do.
August 05, 2022, 07:02:58 AM
The big problem is that the oil corporations might simply increase the prices even more, which defeats the purpose of such "special taxes".
There are only two ways to lower the fuel prices- increase the supply and decrease the demand.
The first way depends on the OPEC countries in the Persian gulf(and maybe Russia). They have no incentive to increase the oil production and lower the prices.
The second way depends on the global economy. If a massive global recession is coming, the global demand for oil and gas will decrease, which will eventually lead to lowering the oil and gas prices.
Imposing "special taxes" won't solve the problem, but the politicians around the world like this "tax the rich" approach, when the crisis strikes.
There are only two ways to lower the fuel prices- increase the supply and decrease the demand.
The first way depends on the OPEC countries in the Persian gulf(and maybe Russia). They have no incentive to increase the oil production and lower the prices.
The second way depends on the global economy. If a massive global recession is coming, the global demand for oil and gas will decrease, which will eventually lead to lowering the oil and gas prices.
Imposing "special taxes" won't solve the problem, but the politicians around the world like this "tax the rich" approach, when the crisis strikes.
August 05, 2022, 05:52:16 AM
The question here is,
Would it really help?
Imposing taxes on these firms doesn't mean they still won't have to take it off the masses. I don't think they wnt go about paying whatever taxes that is imposed on them but the issue here is, it would lead to an increase in price for the various oil products they offer and in the end, the citizens would still be the once to suffer.
It doesn't make any much difference. I think nations that have got oil should look towards a more local production of these resources, get there refineries working and the livelihood of its citizens would be improved.
Would it really help?
Imposing taxes on these firms doesn't mean they still won't have to take it off the masses. I don't think they wnt go about paying whatever taxes that is imposed on them but the issue here is, it would lead to an increase in price for the various oil products they offer and in the end, the citizens would still be the once to suffer.
It doesn't make any much difference. I think nations that have got oil should look towards a more local production of these resources, get there refineries working and the livelihood of its citizens would be improved.
August 05, 2022, 05:43:28 AM
Actually, this is also true in other industries, not just the oil industry. I've been seeing local news headlines of how the businesses in the retail industry, banking industry, energy, and others are registering higher net profits every quarter and every year.
It makes me wonder; there's the pandemic, there's the invasion in Ukraine, there's the rising national debt, there's the rising unemployment rate, rising of the prices of goods and services, rising inflation rate, and so on and so forth and yet the business sector are making more and more money.
The ordinary people are tightening their belts, now more than ever, because everything comes with a higher price now. And yet businesses are unaffected, declaring double digit growth in profit. Why? Because all else are passed on to the consumers. Business people don't compromise their profit.
It makes me wonder; there's the pandemic, there's the invasion in Ukraine, there's the rising national debt, there's the rising unemployment rate, rising of the prices of goods and services, rising inflation rate, and so on and so forth and yet the business sector are making more and more money.
The ordinary people are tightening their belts, now more than ever, because everything comes with a higher price now. And yet businesses are unaffected, declaring double digit growth in profit. Why? Because all else are passed on to the consumers. Business people don't compromise their profit.
August 05, 2022, 04:22:41 AM
source
Due to the Russian invasion of Ukraine oil price skyrocketed triggering inflation and high cost of goods and services. But this unfortunate condition is favoring the oil and gas companies. While households are grappling with higher energy bills, companies are reaping the benefits.This quarter four of the biggest energy firms - Exxon, Chevron, Shell and TotalEnergies - earned nearly $51bn almost doubling what they earned last year.
Recently, UN Secretary General Antonio Guterres has called on nations to impose special taxes on oil and gas companies because of this excessive profits and use the funds to support the poorest and most vulnerable people through these difficult times.
The British and Italian government have imposed these special taxes but the US and French government is rejection this move stating that it might still lead to increase in domestic energy cost and might scare investors away from the industry.
https://www.bbc.com/news/business-62415904
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