But according to ExxonMobil, one of the largest oil companies in the world, the EU should not implement such a tax increase at all. Only individual EU member states, such as the Netherlands, should be allowed to do this.
The American company then turns to the European Court of Justice in Luxembourg. There he will argue that skimming off excess profit is a bad thing, reported the Financial Times.
‘Counterproductive’
ExxonMobil admits to the business newspaper that high energy costs “weigh households and businesses heavily” but argues the levy is “counterproductive” and “would undermine investor confidence, discourage investment and increase dependence on imported energy “.
The EU wants to impose an additional 33% tax on excess profits starting in January. The criterion for this is that the profit must be at least 20% higher than the profit a company made each year for the previous three years.
Big consequences
The European Commission does not want to comment substantively yet and says it “takes note” of ExxonMobil’s legal application and added that “it is now up to the Court to decide on the matter”.
It is clear that the ruling could have important consequences. If ExxonMobil wins, rival oil companies will no doubt challenge their levy as well.
