Energy companies are worried about the government’s recently announced windfall tax proposal, which plans to tax 33% of excess profits from power companies in 2023, a more ambitious proposal than the baseline bloc ministers agreed to in September.
The finance ministry’s proposal will force power producers and firms that sell power to consumers or for resale purposes to dish out an estimated half a billion euros and €1.3 billion, though this will depend on electricity production, price and profits made.
Yet, while the industry has so far expressed understanding towards taxing excess profits given the current circumstances, the plan has shocked some.
The industry had based its expectations on the EU directive and anticipated the tax would be around €100 million at most, the Managing Director of Finnish Energy, Jukka Leskelä told YLE in an interview.
The tax may hamper necessary investments, especially if taxing would continue beyond 2023, said Leskelä, though the finance ministry has quelled such worries, assuring that the measure is by no means intended to be permanent.
The industry has until 12 December to submit a response to the government’s proposal.
(Pekka Vänttinen | EURACTIV.com)
Source: euractiv.com
