Germany discusses 33% excess profit tax for oil and gas companies

German authorities are considering imposing an additional 33% tax on oil and gas companies that have made excessive profits this year due to rising energy prices, Report informs referring to Die Welt.

This includes oil, gas and coal companies, whose profit this year was more than 20% higher than the average profit in 2018-2021. It is reported that the tax could be introduced later this year.

On November 22, Reuters reported that the German government had prepared a plan to limit the upper limit of gas prices for consumers from January next year. Thus, about 80% of energy consumption by households and small businesses will be paid for at such feed-in tariffs.

To finance this program, the German authorities are going to impose an additional tax on companies that receive excessive profits due to rising prices in the electricity industry. Such tax will be levied on profits received from September of the current year until at least June 2023.