Daily Management Review

German Finance Ministry proposes to introduce a tax on excess profits of energy companies


Christian Lindner, Germany's finance minister, has suggested taxing oil and gas corporations' surplus earnings. The tax is anticipated to be 33%, reports Die Welt, citing a document.

Companies involved in the oil and gas, coal, and oil refining industries will be impacted by the planned effort. At the same time, these businesses' profits are expected to be 20% greater than they were from 2018 to 2021.

Die Welt notes that 15 enterprises may be impacted by the regulations. If the government approves the proposed plan, tax receipts to the German budget might range from €1 billion to €3 billion. The finance minister of Germany suggested using these monies for initiatives to lower electricity prices.

EU nations came to an emergency agreement in September to lower electricity rates. The EU nations will have to eliminate fees from energy providers as a condition of the accords, and then direct these funds to make up for the cost of electricity for residents and businesses.

source: welt.de