Will EU bring in a windfall tax on oil companies?

"The finance and economy ministers of Austria, Germany, Italy, Portugal and Spain wrote a joint letter to EU Climate, Net Zero and Clean Growth Commissioner Wopke Hoekstra, asking for such a levy. They wrote that it would 'send a clear message that those who profit from the consequences of the war must do their part to ease the burden on the general public.'"

"An analysis by the UK's Guardian newspaper, using data from Rystad Energy, found that leading oil and gas companies will make an extra $234 billion by the end of the year, if the oil price continues to average around $100."

"The governments calling for the tax said it would provide relief for consumers 'without placing additional burdens on public budgets.' Their letter highlighted 2022 as a precedent, when Brussels put a temporary 'solidarity contribution' on energy companies, imposing a minimum 33% tax on all oil and gas company profits."

The rise in energy prices following the Iran war has prompted EU finance ministers to propose a windfall tax on oil and gas companies. This tax aims to utilize profits from these companies to fund relief schemes for the public. A joint letter from ministers of Austria, Germany, Italy, Portugal, and Spain emphasizes that those profiting from the war should contribute to easing public burdens. Major companies like Saudi Aramco and ExxonMobil are expected to gain significantly from the price surge, with an estimated additional $234 billion in profits by year-end.

Read at www.dw.com