ExxonMobil Suing European Union to Prevent Energy Windfall Tax

Photographer: David Paul Morris/Bloomberg

U.S. oil giant ExxonMobil has filed a lawsuit against the European Union in response to its new windfall tax on oil companies, claiming Brussels has overstepped its legal authority with this “counterproductive” move.

In a statement released on Wednesday, Exxon’s representative, Casey Norton, claimed that the 33% windfall tax will “undermine investor confidence, discourage investment and increase reliance on imported energy and fuel products,”

The emergency measures used by the Council of the EU to get member state support for the proposal are disputed in the lawsuit, as is the Council’s legal power to enforce the new tax.

“Our challenge is targeted only at the counterproductive windfall profits tax, and not any other elements of the package to reduce energy prices,” said ExxonMobil.

“European industries already face a very real competitiveness crisis and governments should be supporting the production of reliable and affordable energy.”

Oil, gas, and coal companies would be required to pay a “crisis contribution” on their exaggerated 2022 profits or “solidarity contribution” agreed to in September.

The new windfall tax imposed by the European Union is expected to generate about $136 billion from energy corporations that have recently reported big profits. Those who are struggling to make ends meet due to rising energy prices and inflation would receive their money back.

According to Frans Timmermans, European Commission Vice President: “A cap on outsize revenues will bring solidarity from energy companies with abnormally high profits towards their struggling customers.”

Original source material for this article taken from here

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Written by Olivia Woods

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