Status: 12/29/2022 3:59 am
The US energy company Exxon Mobil has filed a lawsuit against the EU excess profit tax. The EU wants to use the additional revenue to reduce the drastically increased energy costs for its citizens.
According to its own statements, the US energy company Exxon Mobil has filed a lawsuit against the planned EU excess profit tax with the European Court of Justice in Luxembourg. According to the accusation, the Union has exceeded its legislative powers with this step.
“Our challenge is only to the counterproductive corporate income tax and not to other elements of the energy price reduction package,” said ExxonMobil spokesman Casey Norton.
The tax is intended to give oil companies part of the record profits they made as a result of the Russian invasion of Ukraine. With the additional income from the “solidarity contribution”, the EU wants to reduce the drastically increased energy costs for its citizens.
Exxon faces additional costs of two billion dollars
According to EU plans, all profits that are more than 20 percent above the average for the years 2019 to 2021 are to be taxed at least 33 percent.
According to estimates by the Exxon chief financial officer, this would cost the company “over two billion dollars”. However, the final amount depends on how the member states would incorporate the measure into their budgets for 2023.
According to the company, the tax undermines investor confidence, discourages investment and increases dependence on imported energy and fuel products.
EU “takes note of lawsuit”
The EU Commission said it would take note of the lawsuit. It is now for the General Court to decide. However, the Brussels authority emphasized: “The Commission remains of the view that the measures in question are fully compatible with EU law.”
The measures at EU level were decided at the end of September. They affect not only the producers of cheap electricity from renewable and other sources, but also oil, coal and gas companies and refineries. According to estimates by the EU Commission, the temporary solidarity contribution could bring in 25 billion euros.
Exxon posts record profit
Exxon Mobil has reaped record profits this year on increased prices and demand. The group reported profits of $37.6 billion for the second and third quarters of 2022.
Exxon now argued that the group was investing billions in Europe. “We recognize that the energy crisis in Europe is taking a heavy toll on families and businesses and we have worked to increase energy supplies to Europe,” the spokesman said.