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EU expects to raise €140bn from windfall tax on energy firms

The EU expects to raise €140bn from windfall taxes on energy company profits to “cushion the blow” of the energy crisis.

The European Commission published the proposals on Wednesday as the 27-member European Union grapples with an energy crisis fuelled by Russia's invasion of Ukraine.

During her annual speech, EU Chief Ursula Von der Leyen laid out measures to address the energy crisis. 

The emergency levy will be placed on oil, gas and coal firms alongside a separate measure to cap revenues from renewable electricity generators at less than half of current market prices.

Fossil fuel extractors will be asked by the EU to hand back 33% of taxable surplus profits for the 2022 fiscal year,

The European Commission president, Ursula von der Leyen, said on Wednesday: “In our social market economy, profits are good. But in these times it is wrong to receive extraordinary record profits benefiting from war and on the back of consumers."

“Profits must be shared and channelled to those who need it the most. Our proposal will raise more than €140bn for member states to cushion the blow directly.”

The EU also proposed a mandatory target for countries to cut electricity by 5% use during peak hours, in a bid to save fuel.

EU countries will have to negotiate the Commission's proposals and agree on final laws.

Read more at the Guardian 

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