The American group ExxonMobil seized this Wednesday the Court of Justice of the European Union (CJEU) against the tax on the “super profits” of the energy giants decided by Brussels, which according to the company could “discourage investment”.
Officially called a “temporary solidarity contribution,” this charge is supposed to be paid by oil, gas, and coal producers and distributors who have made huge profits from rising prices after the war in Ukraine.
It plans to deduct 33% of taxable profits by 2022, which are more than 20% higher than the average for the years 2019-21 to redistribute them to households and companies in the face of the explosion of bills.
When it was adopted at the end of September, the Commission had been careful not to use the word “tax” because any new tax provision at European level would have required unanimity of the Twenty-seven, a more complicated and risky procedure than a qualified majority adoption.
The idea was in particular to avoid proceedings such as the one initiated on Wednesday before the CJEU in Luxembourg by ExxonMobil’s German and Dutch subsidiaries.
The CJEU can be filed by a company when it considers that an EU institution has violated its rights.
A “counterproductive” tax for ExxonMobil
“We recognize that Europe’s energy crisis is taking a heavy toll on families and businesses, and we are working to increase Europe’s energy supply,” company spokesman Casey Norton said in a statement sent to AFP. .
But taxing “super profits” is “counterproductive,” he says. “It will undermine investor confidence, discourage investment and increase reliance on imported oil and energy products,” the spokesperson added.
ExxonMobil earned $37.6 billion in the second and third quarters alone.
US President Joe Biden denounced these “war profits” at the end of October and deplored the fact that profits generated by hydrocarbon companies are returned to shareholders while prices at the pump for motorists remain high.
During a presentation to investors in early December, ExxonMobil’s chief financial officer estimated that the European tax would cost the group “more than $2 billion.” He also specified that the final amount would depend on how member states integrate this measure into their 2023 budget.
Source: BFM TV
