The New System of Petroleum Revenue Tax

<p>With the passing of the Finance Act of 1979 the new system of Petroleum Revenue Tax (PRT) became law. The Government essentially enacted the proposals made by the previous Administration in August, 1978. There are three changes from the system established in 1975 all taking effect from January, 1979. The rate of PRT is increased from 45 to 60 per cent, the oil allowance is reduced from 10 million tons (with a maximum of 1 million tons in any one year) to 58 million tonnes (with a maximum of half a million tonnes in any one year), and the 'uplift' allowance on capital expenditure for PRT is reduced from 75 to 35 per cent.</p>