A tax on excess profits from the coal and oil industry. Climate resort is finally speaking

The Ministry of Climate and Environment does not work on excess profits from the coal and oil industry, the ministry told PAP when asked about possible business related to the tax on excess profits of coal and oil companies.

Speculation shook stocks

The Palestinian People’s Assembly asked the Ministry of Climate and Environment if work is underway in the ministry to impose a tax on the excess profits of companies in the coal and oil sectors. Tax speculation rattled mining, fuel and energy stocks on Wednesday.

WysokieNapiecie.pl reported this Informal consultations have begun with part of the industry about the possibility of implementing such a tax. The portal reminded that the tax on the excess profits of companies engaged in the extraction and refining of crude oil and coal mining was approved by the Council of the European Union according to a regulation in October 2022, and the tax applies to companies that record 75% of their profits. Proceeds from the sale or refining of crude oil, coal and coking coal. The tax rate is 33 percent. On income that exceeds 20% of the median income from 2018-2022.

Climate resort responds

In the response it submitted to the Palestinian parliament on Wednesday evening, the Ministry of Climate and Environment indicated that as part of the legislative work related to the energy crisis, in the emergency measures law aimed at reducing electricity prices and subsidizing some beneficiaries in 2023, a write-off mechanism has been introduced for the fund on all producers under All forms of concluding contracts for the sale of electricity.

“This is the implementation of the emergency income regulation provided for in the EU regulation on emergency intervention to solve the problem of high energy prices” – it was emphasized.

As explained by the Ministry of Culture and Environment, this means that “if energy producers sell electricity under PPAs (long-term electricity purchase agreements concluded between an energy producer and an energy consumer – PAP) and receive excess income, they will be subject to a duty to write to the fund.” “The mechanism allowed energy companies not to get rich at the expense of citizens During the crisis that the whole of Europe is facing.

As added in the Ministry’s response, “In the case of surplus profits from the coal and oil industry, the Ministry of Climate and Environment is not doing business.” (PAP)

Author: Michał Boron

Mic/op/mk/