- Austria launches windfall tax on energy companies.
- The important thing is that we are taking a step towards greater fairness
On Friday, Austria’s government announced plans to introduce a windfall tax on energy companies of up to 40% for oil and gas firms. The move implements a European Union-wide agreement for a levy of at least 33%, aimed at redistributing some of the extra income energy companies have earned thanks to soaring prices driven largely by Russia’s invasion of Ukraine.
The Austrian Vice-Chancellor Werner Kogler of the Greens, said the extra profits are war dividends. In addition, “The important thing is that we are taking a step towards greater fairness”.
The statement said that tax will apply from Dec. 1 of this year until the end of 2023. Also, a separate system will apply to power companies, kicking in when they earn 140 euros ($145) per megawatt power hour. The threshold can be increased to 180 euros if those companies invest in renewables.