Austria plans to adjust a windfall tax on oil and gas companies to kick in at lower profit levels, as part of efforts to contain public discontent over rising corporate earnings at a time of rising costs life
The tax, which removes 40% of additional net income, will apply to profits that exceed the pre-crisis average from 2018 to 2021 by more than 10%, compared to the 20% threshold in place until now, he said. say the government of Vienna in a statement. Saturday.
“It is not acceptable for energy companies to profit from the crisis when customers are bombarded with horrible bills,” Chancellor Karl Nehammer said in the statement.
The announcement comes as opposition parties put rising interest rates and high inflation at the center of their political agenda almost a year before Austria’s general election.
The government and a lobby group for banks announced some concessions last week for households hit by spiraling mortgage payments. The latest move by fossil fuel companies follows a similar tightening for power producers, who must contribute 90 percent of profits deemed excessive.
National energy company OMV AG paid a tax contribution of around 90 million euros ($97 million) over six months in 2022 after the levy was introduced.
