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    Netherlands to raise $3.2 billion with windfall tax on fossil fuel companies


Proceeds will fund a price cap on household energy costs.

by: Reuters

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Complimentary, Natural Gas & LNG News, Europe, Political, Tax Legislation, News By Country, Netherlands

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".


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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)