Govt to increase taxes on oil and gas exploration firms

The Government is reportedly set to hike the amount of tax imposed on energy firms that discover oil and gas off Ireland's coast.

At present, such companies pay just 25% in tax on their profits.

However, reports this morning say the Cabinet has approved new plans to raise this to 40% in some cases.

The move has reportedly been prompted in part by the controversy surrounding the Corrib gas project and the low return it will have for Irish taxpayers.

Opponents of the project say the Government effectively allowed Shell to make massive profits from the exploitation of Irish natural resources without ensuring a similar benefit for the Irish Exchequer.

They say Statoil's involvement in the project means the Norwegian government will actually benefit more than Irish taxpayers.