European oil giant warns that a windfall tax could backfire
- Alfred Stern, CEO of OMV, has warned that a planned EU windfall tax could have a significant impact on energy companies’ earnings.
- “We’ll be watching that because it could really have a huge impact,” Stern told reporters.
- Brussels hopes to cut revenue from low-cost generators and make fossil fuel companies share windfall profits.
CEO of an integrated Austrian multinational oil, gas and petrochemical company OMV (OTCPK: OMVJF) Alfred Stern warned that EU windfall tax It could have a huge impact, and he criticized the proposal’s attributing to earnings over the past three years, noting that they weren’t normal times.
“We’ll be watching that because it could really have a huge impact,” Stern told reporters. However, Stern says it is difficult to assess the exact impact of the tax given that the details of the proposal have yet to be determined.
Brussels hopes to cut revenue from low-cost power generators and make fossil fuel companies share windfall profits in a bid to raise more than 140 billion euros ($140 billion) to protect consumers from rising energy prices.
Governments across Europe have already invested hundreds of billions of euros in tax cuts, subsidies and subsidies to tackle a crisis that is forcing industries to shut down production, driving up inflation and raising bills before winter. according to draft proposal Issued Wednesday, energy companies will pay a 33% solidarity tax on any profits for the current year that are 20% more than the average of the past three years.
Back in May, former British Finance Minister Rishi Sunak An unexpected tax The major oil and gas companies are trying to alleviate the country’s worsening cost of living crisis. Chancellor Sunak said the tax would be levied on energy companies that were making “extraordinary profits” due to the sharp rise in commodity prices.
Meanwhile, Argentine President Alberto Fernandez pledged to Follow a special tax On the company’s profits boosted by the war in Ukraine. The bill aims to impose an additional 15% tax on companies with profits over 1 billion pesos (about $8.3 million) in 2022 and whose profit margin is either more than 10% in real terms or 20% more than in 2021. The scale is It is seen as an attempt by the Argentine center-left government to reduce the fiscal deficit and contain hyperinflation, which is nclose to 80%.
By Alex Kimani for Oilprice.com
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