The excess profit tax passed by the EU could cost Exxon two billion dollars by the end of next year. Money that the energy company would rather save. Now he’s filing a lawsuit against the EU.
The energy giant ExxonMobil is taking legal action against the excess profit tax passed by the European Union. “We are only targeting the counterproductive excess profit tax and not other elements of the energy price cut package,” spokesman Casey Norton said, confirming a report by the Financial Times. This had reported that ExxonMobil wanted to sue the EU in the General Court of the European Union because it exceeded its legislative powers.
According to the company, the tax undermines investor confidence, discourages investment and increases dependence on imported energy and fuel products. At the same time, ExxonMobil promised massive investments in Europe. In a conversation with analysts, Exxon’s chief financial officer, Kathryn Mikells, recently said the EU tax could cost her company at least $2 billion by the end of 2023.
The EU Commission said it would take note of the lawsuit. It is now for the General Court to decide. However, the Brussels authority stressed: “The Commission remains of the view that the measures in question are fully compatible with EU law.”
The measures at EU level were decided at the end of September. They affect not only the producers of cheap electricity from renewable and other sources, but also oil, coal and gas companies and refineries. They should pay a solidarity levy of at least 33 percent on their excess profits. The money should also be used to finance relief for citizens and companies. According to estimates by the EU Commission, the temporary solidarity contribution could bring in 25 billion euros.
