EU weighs windfall tax on energy firms

Five EU finance ministers from Germany, Italy, Spain, Portugal and Austria have called on the European Commission to introduce a tax on the windfall profits of energy companies, citing a sharp rise in oil and gas prices following the escalation of the conflict over Iran.

In a joint letter, they said companies benefiting from the consequences of the war should help mitigate the impact on households and businesses.

The ministers also pointed to a precedent set in 2022, when the EU introduced a similar levy during the energy crisis triggered by Russia’s invasion of Ukraine. The European Commission has signalled it is considering reintroducing some crisis measures, including price controls or energy taxes.

Gas prices in Europe have risen by more than 70 per cent since the end of February, highlighting the EU’s continued vulnerability to global energy shocks. Brussels is particularly concerned about supplies of refined fuels such as diesel and kerosene.

(reuters, pir)