Oil, gas taxes don’t scare advisors as 40% say "Buy"

Concerns over higher taxes on oil and gas exploration firms have driven shares down.

Banks' investment advisors are unconcerned about the pending release of the Sheshinski committee's recommendations on gas royalties and taxes. A survey by "Globes" and Meitav Investment House Ltd. yesterday among 200 investment advisors found that 40% think that falls in the share prices of oil and gas exploration partnerships should be exploited to increase exposure to the sector.

30% of investment advisors are not bothered by the reports of the upcoming recommendations, and see no need to change investment positions in the partnerships. Conversely, 30% of advisors are worried about the recommendations and think that the sector's risk is too high. They advise reducing exposure to the sector, because the partnerships' share prices will continue to be affected.

It appears that the current 12.5% royalties on revenue paid by the oil and gas exploration partnerships will not change. However, a new tax of 20-60% will be levied, set for each project.

Published by Globes [online], Israel business news - www.globes-online.com - on November 10, 2010

© Copyright of Globes Publisher Itonut (1983) Ltd. 2010

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