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US oil and gas company ExxonMobil is addressing the European Court of Justice in Luxembourg to challenge the EU’s decision on an additional tax for energy companies.
The EU decided in September that in 2022 or 2023 the extra profit from high oil and gas prices should be creamed off with a “solidarity levy”. Energy ministers agree. The resulting €25 billion can be used to ease the growing burden on citizens and businesses. The extra profit tax is at least 33%.
ExxonMobil claims that only individual EU member states have the right to impose a tax measure. The company also disagrees that the European Commission has opted for an urgent procedure and that the European Parliament has been overridden. The Commission argues that the decision is fully in line with European law.
Profit record
ExxonMobil made a profit of nearly 20 billion euros in the third quarter. It was almost triple from last year’s third quarter. The new measure is estimated to require the company to pay an additional 2 billion euros in taxes next year.
The passage to court cannot stop the implementation of the measure. It could be years before the court reaches a verdict.
