At the end of September, the Council of the European Union agreed to impose a mandatory temporary solidarity contribution (also called extraordinary profit tax) on the profits of companies operating in the crude oil, natural gas, coal and refinery sectors. Member states plan to use the proceeds to provide financial support to households and companies and to mitigate the impact of high retail electricity prices. But the fossil fuel industry is not happy about it.
The BBC reported that the US energy giant “ExxonMobil” applied to the European Union (EU) General Court against the EU to have the new extraordinary profit tax imposed on oil companies canceled due to the imposition of companies. those who take advantage of something for which they are not responsible.
It is important to remember that energy companies are making significantly more money from oil and gas this year, partly because of concerns over the supply and availability of these products, which contributed to the rise in prices due to Russia’s invasion of Ukraine.
Of these, “ExxonMobil” reported a profit of approximately $20 billion (EUR 18.8 billion at current exchange rates) in the third quarter in October. And the new EU tax will cost the group “more than $2 billion” (€1.88 billion), according to the company’s investor meeting in early December.
At the same time, the US accuses the energy giant EU of overstepping its mandate and describes the tax imposed as “inefficient”. In the company’s view, the fee discourages investment and undermines investor confidence.
“Whether we invest here depends primarily on how attractive and globally competitive Europe will be,” ExxonMobil representative Casey Norton told Reuters news agency.
The European Commission, on the other hand, announced that it was aware of the US company’s claim, but that the decision on this matter was now up to the EU General Court.
At the end of September, the European Council agreed to establish a mandatory temporary solidarity contribution from the profits of companies operating in the crude oil, natural gas, coal and refining sectors. The solidarity contribution will be calculated from the taxable profit determined in accordance with national tax rules, starting in fiscal year 2022 and/or 2023 and exceeding a 20% increase in average annual taxable profit since 2018. The solidarity contribution will be applied in addition to the normal taxes and duties applicable in the Member States.
Proceeds from the solidarity contribution to member states are expected to be used to provide financial support to households and businesses and to mitigate the impact of high retail electricity prices.
Member States may take national measures equivalent to a solidarity contribution, provided they are in line with the objectives of the Regulation and generate at least comparable incomes.
Source: Tv Net
I am Joel Fitzgerald, a news website author for The News Dept. I have worked in the media and journalism industry for over 10 years and specialize in world news. My articles have been featured in prominent publications such as The New York Times and The Washington Post, where I am an expert contributor on global affairs.