German Finance Ministry To Introduce Tax On Oil, Gas Companies' Excess Profits - Reports

Germany's Finance Ministry intends to levy a 33% tax on excess profits of oil and gas companies, German newspaper Welt reported on Wednesday, citing the ministry's tax project

MOSCOW (UrduPoint News / Sputnik - 23rd November, 2022) Germany's Finance Ministry intends to levy a 33% tax on excess profits of oil and gas companies, German newspaper Welt reported on Wednesday, citing the ministry's tax project.

Starting in 2022 and 2023, all companies operating in the oil, gas, coal and refining sectors must pay an additional tax on profits exceeding by more than 20% Germany's average in the period between 2018 and 2021, the newspaper said.

The ministry hopes to use the extra funds, which are forecast to reach dozens of billions of Euros, to cover the costs of the government's package for subsidized energy for consumers, the report added.

In October, the German parliament approved a 200 billion euro ($207 billion) emergency plan against the backdrop of the energy crisis.

The funds will be used to support the national economy until 2024, including down payments on gas bills for private households starting in December.

Since 2021, energy prices in EU countries have been surging as part of a global trend. After the beginning of Russia's military operation in Ukraine in February 2022 and the adoption of several packages of sanctions against Moscow by the EU, energy prices accelerated their rise.

Energy security rose to the top of both global and national agendas, with European governments forced to resort to contingency measures. European businesses have also been pressured to comply with strict energy saving measures while also having to pay higher energy bills, which caused many companies to cut production or close down.