UK Chancellor Rishi Sunak announced a temparory windfall tax on the energy sector when he set out the government's plans to ease rising energy prices on Thursday, UK media reported.
"It will be set at 25 percent, and temporary," Suvak said.
"New temporary Energy Profits Levy on oil and gas firms will raise around £5 billion ($6.3 billion) over the next year to help with cost of living, with a new investment allowance to encourage firms to invest in oil and gas extraction in the UK," the UK Treasury said in a statement.
Sunak also unveiled a £15 billion (around $19 billion) support package for consumers hit by soaring energy bills.
The UK's energy price cap is expected to rise to around £2,800 ($3,500) in October, the boss of the country's energy regulator warned, meaning residents will see their gas and electricity bills hike further.
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