Casey Norton, a spokesman for Exxon, said the US supermajor recognised high energy costs were “weighing heavily on families and businesses” but argued the levy was “counterproductive” and would “undermine investor confidence, discourage investment and increase reliance on imported energy”.
The so-called solidarity contribution was one of several measures agreed upon by the council in September to ease the burden on energy consumers, with the money raised to be recycled for hard-hit consumers or invested in clean energy supply. The commission is the EU’s executive, which has the power to propose legislation. The council is the intergovernmental arm of the EU, in which representatives of its 27 member states debate and agree legislation.The new tax is due to take effect from December 31st and will apply a levy of at least 33 per cent on any taxable profits in 2022-23 that are 20 per cent or more above average profits between 2018 and 2021.
The article states that “in a spirit of solidarity” member states may approve legislation directly from the commission, circumventing the European Parliament, “in particular if severe difficulties arise in the supply of certain products, notably in the area of energy”.