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EU Commission to propose Windfall tax on big oil, proceeds to fund renewables, 28 Feb
According to Reuters sources, the European Commission will propose EU countries tax energy companies' windfall profits from the gas price rise. With revenue from the windfall being invested in renewable energy sources. The proposal is subject to change, but would not introduce an EU-wide tax, rather it would permit governments to introduce the tax without running afoul of EU rules.
Unfortunately for [EU27] taxing authorities, LNG is a seaborne commodity, and producers are incentivized to sell gas to whoever bids the highest price, net of tax and transportation. By increasing taxes on energy companies in Europe, it could mean European utilities and consumers need to pay a higher price to pull gas away from Asia. Effectively putting the additional tax burden on already stretched European consumers.

In the medium term, the taxation strategy becomes more opaque.

by Cat on Tue Mar 1st, 2022 at 12:15:44 AM EST
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