2023-08-27 13:16:54
Austria wants to tax a larger share of the profits of energy companies. At the end of last year, the country introduced a tax on the high profits of oil and gas companies. They benefit from the energy prices that have risen sharply as a result of the war in Ukraine.
Now the government in Vienna is announcing that it classifies a larger share of the profits in the energy sector as excessive profit.
Until now, the limit has been 20 percent above the average profit that the companies made in the period between 2018 and 2021. Now everything above 10 percent is already seen as excess profit and therefore extra taxed.
Austrian Chancellor Karl Nehammer says it is “unacceptable for energy companies to profit from the crisis while customers are bombarded with terrifying bills”. The levy should lead to additional tax revenues, which the government can use to compensate households for the sharp rise in the cost of living.
Austrian opposition parties have made measures against high inflation a spearhead in the run-up to next year’s elections. The government now seems to be responding to that.
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