Discussion on excess profit tax: Esken advertises, Djir-Sarai warns

Many corporations are currently making high profits in view of the energy crisis. Politicians are therefore discussing the introduction of an excess profit tax. The positions of the SPD and FDP are further apart.

The introduction of a special tax on high additional profits from energy companies remains highly controversial in the coalition. The SPD chairwoman Saskia Esken renewed in ARD morning magazine the demand for such an excess profit tax.

It’s about companies that make excessive profits without their own performance and innovation, “that is, making profit out of the crisis”. The state should skim off this in order to relieve citizens and small companies.

Also for the chancellor “not an issue”

Esken’s statement is contrary to that of the chancellor – a spokesman for Olaf Scholz (SPD) recently explained that an excess profit tax is currently not an issue for the chancellor. Esken admitted that such a tax is not in the coalition agreement. But that is also the case with other measures that must now be taken in the crisis.

“Would massively damage the business location”

The FDP General Secretary Bijan Djir-Sarai positioned himself in the ARD morning magazine also against the introduction of an excess profit tax. He warned that such a levy would “massively damage” the business location. Due to the introduction of an excess profit tax, investments could no longer take place in the future. In addition, jobs would be at risk.

Djir-Sarai also explained that profits are already heavily taxed in Germany. In the case of a separate excess profit tax, the state would also have to define profit limits. However, he cannot do this without knowing the internal processes in a company. According to Djir-Sarai, an excess profit tax would therefore be “an arbitrary form of taxation”. This would also “open the floodgates for further arbitrary measures”.

Instead of introducing an excess profit tax, the FDP politician suggested relieving the “hard-working middle class” in particular. Djir-Sarai cited the abolition of cold progression as an example of relief. This basically means: Even though you got a raise, you can afford less than before.

ARD Germany trend: Majority for excess profit tax

In the current ARD Germany trend A clear majority of German citizens are in favor of such a tax. 76 percent think they are correct, 19 percent reject them. Supporters of all parties, including the FDP, overwhelmingly agree.

UN Secretary-General António Guterres had also called for greater taxation of energy company profits. Guterres called it “immoral” that oil and gas companies profited from this crisis with record profits.