Coordination of tax measures on windfall profits
21. März 2022
Brussels, 21.03.2022
Honourable Council President Michel,
Honourable EU Heads of States and Governments,
The high energy and gas prices are of concern to all of us. Oil and Gas companies have been profiting from this crisis. Even before the war in Ukraine oil companies have made extraordinary profits, like Exxon Mobile, Shell and even Total.(1)(2) After the start of the war in Ukraine the “Big Oil” have been profiting even more, as the oil price skyrocketed. However, in the last few days, the oil price has been declining and the prices have not been going down accordingly.
We welcome the EU Commission Communication on “RePowerEU: joint European Action for more affordable, secure and sustainable energy”, where the Commission suggests to Member States to consider temporary tax measures on windfall profits for the purpose of mitigating the high energy prices and the possibility to generate up to EUR 200 billion in 2022 to partially offset higher energy bills.
In order for those measures to be highly effective and in order to provide a level playing field, we are calling for a profound coordination between the Member States. Only if the measures are similar in all 27 Member States of the EU and the windfall profits can be taxed equally, the companies will not have a chance to avoid taxes in European countries, where the measures are lightly imposed and implemented. Only by a good coordination, we can ensure also a wellcoordinated mitigation of the energy crisis for all European citizens.
Kind regards,
Members of European Parliament
Rasmus Andresen
Benoit Biteau
Saskia Bricmont
Anna Cavazzini
David Cormand
Rosa D’Amato
Eleonora Evi
Daniel Freund
Claude Gruffat
Martin Häusling
Niklas Nienaß
Ville Niinistö
Mounir Satouri
Jordi Solé
Juozas Olekas
Dimitrios Papadimoulis
René Repasi
Paul Tang
Ernest Urtasun
(1) https://www.nytimes.com/2022/02/01/business/exxon-earnings-4q-2021.html
(2) https://www.handelsblatt.com/unternehmen/oel-und-gas-big-oil-schreibt-milliardengewinne-schlechtenachricht-
fuer-verbraucher/28060918.html