Connect with us

Hi, what are you looking for?

Editor’s Pick

Energy companies launch legal action over windfall taxes

America’s biggest energy producer is suing the European Union in an attempt to force the scrapping of the bloc’s new windfall tax on oil groups, arguing that Brussels exceeded its legal authority by imposing the levy.

ExxonMobil lodged a lawsuit yesterday in what is regarded as the most significant response yet against the tax from the oil industry, which has been targeted by western governments amid a surge in energy prices after Russia’s invasion of Ukraine in February.

The legal action threatens the future of a levy that the European Commission said would raise €25 billion “to help bring down energy bills”, according to the Financial Times.

It came hours after it emerged that the British government had been threatened with legal action by a wind farm developer over the introduction of its windfall tax. Community Windpower, with eight onshore wind farms, has said it will sue unless the government lifts the planned tax on low-carbon generators, or overhauls the legislation.

It told John Glen, the Treasury chief secretary, that the levy announced in the autumn statement was “unfairly disproportionate” and would hamper its plans to achieve net zero by 2050.

The Exxon lawsuit was filed by the group’s German and Dutch subsidiaries in Luxembourg. It challenges the council of the region’s legal authority to impose the new tax — a power generally reserved for sovereign countries — and its use of emergency powers to secure member states’ approval.

In October Exxon reported net income of $6.75 billion in the third quarter, compared with a loss of $680 million in the same period last year. A spokesman said the company recognised that high energy costs were “weighing heavily on families and businesses”, but argued the levy was “counterproductive” and would “undermine investor confidence, discourage investment and increase reliance on imported energy”. Exxon was now considering “future multibillion-euro investments” in Europe, he said.

The EU levy was followed in November by Britain, which increased its windfall tax on oil and gas producers from 25 per cent to 35 per cent and extended it until 2028. The government said the levy was “not designed to penalise electricity generators”.

Your information is secure and your privacy is protected. By opting in you agree to receive emails from us. Remember that you can opt-out any time, we hate spam too!

Latest

Editor’s Pick

<?xml encoding=”utf-8″ ??> The chain announced last year that it would be selling nearly 40 of its pubs due to the combined impact of...

Editor’s Pick

<?xml encoding=”utf-8″ ??> The highest taxpayers in the UK include a scrap metal dealer, JK Rowling, the founder of Gymshark, Sting and the Duke...

News

PIXABAY SYDNEY — Australia’s competition regulator said on Friday it would check whether influencers on social media platforms had failed to disclose their affiliation...

News

Petronas Twin Towers in Kuala Lumpur, Malaysia. — PEXELS KUALA LUMPUR — Malaysia’s law minister on Thursday said a Luxembourg court had set aside...

News

A man types on a computer keyboard in this illustration picture taken on Feb. 28, 2013. — REUTERS/KACPER PEMPEL/FILE PHOTO WASHINGTON — The Federal...

News

To reach more customers across the country, Globe, the leader in Mobile, is opening assisted registration in 30 branches of leading supermarket Puregold as...

You May Also Like

News

COVID-19 has had a significant impact on the mental health of Filipinos across different groups all over the archipelago. From frontline workers, parents balancing...

News

REUTERS By Luz Wendy T. Noble, Reporter The country’s foreign exchange buffers slightly increased as of end-October as the value of the central bank’s...

News

BW FILE PHOTO GROSS BORROWINGS by the National Government reached P2.6 trillion as of end-September as it continued to raise funds to respond to...

News

KARASOLAR.COM TENA, Ecuador — Ecuador’s rainforest Achuar people say their ancestors long dreamed of a “fire canoe” or “electric fish” that would let them...

Disclaimer: Respect Investment.com, its managers, its employees, and assigns (collectively "The Company") do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

Copyright © 2022 Respect Investment. All Rights Reserved.