ExxonMobil Seeks To Block EU Windfall Tax
"); jQuery("#212 h3").html("
"); });
2022-12-29 HKT 03:22
US energy giant ExxonMobil filed suit on Wednesday against the European Union, seeking to block its temporary tax on oil firms' windfall profits, a company spokesperson said.
With energy prices soaring following Russia's invasion of Ukraine, European Commission chief Ursula von der Leyen announced in September a plan for major oil, gas and coal companies to pay a "crisis contribution" on their elevated 2022 profits.
Details later outlined a 33 percent tax on profits for 2022, which are more than 20 percent higher than the average for 2019-21.
The Commission was careful not to use the word "tax" when it adopted the measure at the end of September, as any new tax provision at the European level would have required the unanimous agreement of all 27 EU member countries.
Nonetheless, ExxonMobil's German and Dutch subsidiaries on Wednesday filed a challenge to the new measure at the EU's Luxembourg-based General Court.
"We recognize that the energy crisis in Europe is weighing heavily on families and businesses, and we've been working to increase energy supplies to Europe," ExxonMobil spokesperson Casey Norton said in a statement.
"Our challenge is targeted only at the counter-productive windfall profits tax, and not any other elements of the package to reduce energy prices."
ExxonMobil reported earnings of $37.6 billion over the second and third quarters of 2022.
During an investor meeting in early December, ExxonMobil's chief financial officer estimated that the EU tax would cost the group "over $2 billion."
She also said that the final amount would depend on how member states incorporate the measure into their 2023 budgets.
US President Joe Biden had also threatened a windfall tax on energy companies over what he called "war profiteering", but an American version of the EU tax has not materialised. (AFP)
US Stocks Rise On Hopes Of Pause In Rate Increases
Wall Street stocks finished solidly higher on Thursday, reflecting better sentiment on the US economy and a consensus vi... Read more
China's Financial Risks 'controllable': Regulators
The head of the National Financial Regulatory Administration on Thursday told a high-profile forum in Shanghai that the ... Read more
Banks Cut Yuan Deposit Rates, Could Boost Consumption
China's biggest banks on Thursday said they have lowered interest rates on yuan deposits, in actions that could ease pre... Read more
Cheese And Wine Put EU, Australia Deal In Peril
Australia on Thursday threatened to walk away from a blockbuster free trade deal with the European Union unless its prod... Read more
US Stocks End Mixed As Tech Shares Are Sold Off
Gains by industrial companies lifted the Dow on Wednesday, while weakness among technology shares pushed the Nasdaq deci... Read more
Amazon 'plans Prime Video Streaming Service With Ads'
Amazon.com is planning to launch an advertising-supported tier of its Prime Video streaming service, the Wall Street Jou... Read more