EU Rules Out Windfall Tax on Oil Profits for Now

The European Commission has no plans at this time to introduce an EU-wide tax on windfall profits at oil companies, an idea advocated by German Finance Minister Lars Klingbeil. European Commissioner Valdis Dombrovskis said on Friday that the Commission was not putting forward such a proposal.

Klingbeil is pushing for the windfall tax in response to a sharp rise in oil companies' profits during the war between the US and Iran. Finance ministers from Portugal, Spain, Austria, Italy and Poland also support a coordinated approach.

The German finance minister has called on the Commission to prepare specific options before the next meeting of EU finance ministers on 9 October, saying the measure would help lower fuel prices.

Dombrovskis did not rule out the possibility that the Commission might propose measures at a later date. He noted that member states could introduce special taxes on oil companies on their own, adding that the Commission would continue to monitor the situation.

(mja)