Germany and five other EU countries call for windfall tax on oil firms
Finance minister Lars Klingbeil and several EU counterparts ask to tax extra oil profits tied to the war in Iran and to add the topic to the ECOFIN agenda in Dublin in mid‑September.
Germany has launched an initiative at EU level proposing a windfall tax on oil companies in response to elevated fuel prices, the German finance minister Lars Klingbeil said in a joint letter published on Saturday.
Ministers want extra profits taxed
In the letter, Klingbeil and his five European colleagues call for taxation of the increased profits that oil firms have recorded “as a consequence of the war in Iran.” The move aims to capture extraordinary gains that have contributed to higher pump prices across the bloc.
The correspondence was addressed to the finance minister of Ireland, the country that currently holds the presidency of the Council of the EU. According to the document, the signatories want the issue placed on the agenda of the meeting of the economic and financial ministers of the EU (ECOFIN) in Dublin in mid‑September.
Officials familiar with the initiative say the proposal was supported by the finance ministers of Portugal, Spain, Austria, Italy, Poland and Germany. The letter asks EU counterparts to consider a coordinated approach so that any special taxation is applied across member states rather than piecemeal at national level.
Proponents argue a temporary windfall tax could help ease the burden on households facing high filling‑station bills and could be used to finance targeted relief measures. Critics warn that such measures risk deterring investment in the energy sector and that details — scope, rates and duration — would need careful negotiation among member states.
Photo: DPA)
