The European Union is considering introducing an additional tax for oil and gas companies

The European Commission is considering whether to introduce an EU-wide windfall tax on oil and gas companies that have seen significantly higher profits as a result of rising energy prices. The funds raised this way could be used to ease the burden of high energy costs on the public.

According to Wopke Hoekstra, the EU Commissioner for Climate and Taxation, a special working group will assess how effective such a tax would be and what problems its introduction could bring. The initiative is backed by Germany, Spain, Portugal, Italy, Poland, and Austria.

The EU applied a similar measure back in 2022. At that time, companies were required to pay an additional tax on the portion of their profits that exceeded the average of previous years by more than 20%. The minimum rate was 33%, and this measure raised nearly €29 billion.

The introduction of a new tax could lead to legal disputes with companies. ExxonMobil and other companies are still challenging the decision made in 2022 to this day. In addition, several countries have already introduced similar taxes under their own rules.

In Portugal, for example, a 33% tax applies to the additional profits of oil and refining companies in 2026.

Source: Reuters