EU Commission President Ursula von der Leyen has pledged to raise more than €140billion in windfall levies that could also be imposed on energy companies who sell to Britons. Story by the Express
European Commssion President Ursula von der Leyen has signalled that the EU will slap a windfall tax on energy companies. In the UK, Prime Minister Liz Truss has pledged to cap soaring consumer energy bills for two years, a move she said would protect consumers and businesses.
Opposition parties have said she should impose a windfall tax on energy generators, but she has rejected this idea, saying she would instead renegotiate some contracts with generators. She has not given precise details on how this would work.
The Prime Minister also pledged to ensure the energy companies’ profits would be reinvested in the country’s economy.
But her plan could backfire as the EU executive plans to skim off revenues from low-cost electricity generators and make fossil fuel firms share windfall profits.
This would mean that in effect British money paid to the firms could be redirected to the bloc through the EU’s windfall tax. The European Commission published the proposals on Wednesday as the 27-member European Union grapples with an energy crisis fuelled by Russia’s invasion of Ukraine.
Governments across Europe have already ploughed hundreds of billions of euros into tax cuts, handouts and subsidies to tackle a crisis that is driving up inflation, forcing industries to shut production and hiking bills ahead of winter.
“In these times, profits must be shared and channelled to those who need it most,” European Commission President Ursula von der Leyen told the EU Parliament in Strasbourg, adding that the plans should raise more than 140 billion euros for member states to rechannel into helping businesses and retail consumers. Continue reading: EU plots grab on UK consumers money with new tax pledge on energy companies