Netherlands to raise $3.2 billion with windfall tax on fossil fuel companies
Amsterdam, Nov 1 (Reuters) - The Dutch government intends to levy a windfall tax on fossil fuel companies retroactively for the year 2022, it said on Tuesday.
In a letter to parliament, the Finance Ministry described the decision as a temporary emergency measure taken "in connection with the high energy prices".
|
Advertisement: The National Gas Company of Trinidad and Tobago Limited (NGC) NGC’s HSSE strategy is reflective and supportive of the organisational vision to become a leader in the global energy business. |
The government expects the tax, which it called a "solidarity contribution", to raise 3.2 billion euros ($3.16 billion). The proceeds will be used to fund a price cap on energy for households announced in October.
Companies with activities in the oil, natural gas, coal and petroleum refining sectors are subject to the 33% tax, which is to be levied on "excess profits".
Excess profits are profits that are more than 20% above the average level of 2018-2021, the ministry said.
Countries around the European Union have been announcing windfall taxes on oil and gas firms as part of emergency measures to help consumers.
($1 = 1.0125 euros)
(Reporting by Toby Sterling; Editing by David Goodman and Alex Richardson)