(MENAFN) According to Reuters, citing finance ministry sources, the German government intends to apply a special tax of 33% on any excess profits generated by firms during the current energy crisis.
The fee, dubbed the "EU energy crisis contribution," is expected to go into effect by the end of the year. It would affect oil, coal, and gas businesses, as well as refineries, whose earnings for this and the following year surpass 20% or more of the 2018-2021 average.
Based on the research, the tax could raise between €1 billion and €3 billion in income.
Berlin has been in discussions on the levy at the European Union level and has looked at several methods to implement it.
“This requirement from European law leads us onto thin ice in German tax law but it must be implemented,” Finance Minister Christian Linder informed in a meeting, highlighting that “We at the finance ministry are making a suggestion to parliament on how to do this in the most responsible way in terms of the constitution.”
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