In 2016, Shell paid more than $55.6 billion to governments. We paid $4.4 billion in income taxes and $2.3 billion in government royalties, and collected $48.9 billion in excise duties, sales taxes and similar levies on our fuel and other products on behalf of governments.
The report covering details on payments to government in 2016 where Shell has upstream operations, including the basis of reporting and a breakdown by country are available in our Report on Payments to Governments.
The 2016 report, which details payments in 31 countries and this year also includes BG payments, is prepared in accordance with the UK’s Reports on Payments to Governments Regulations 2014 (as amended in December 2015).
This is the second report issued by Shell under such Regulations. In fulfilling the requirements set out by the UK we are bound by the regulations as they are set out, and are reporting on a different basis to the voluntary reports in the past. For example, like in 2015 this year’s report excludes payments related to refining, natural gas liquefaction or gas-to-liquids activities as these are not in scope of the UK regulations.
Tax binds governments, communities and businesses together. Revenue transparency provides citizens with important information to hold their government representatives accountable and to advance good governance. Shell is committed to transparency as it builds trust. Trust is essential for a company that operates in our line of business, reflecting our core values of honesty, integrity and respect for people.
By fulfilling the mandatory disclosures in line with the new UK legislative requirements we demonstrate that extraction of natural resources can lead to the opportunity of government revenue, economic growth and social development.