The finance ministers of Germany, Italy, Spain, Portugal and Austria appealed in a joint letter to the European Commission to introduce a tax on windfall profits of energy companies.
The proposal appeared in connection with rising fuel prices, which are a consequence of the armed conflict in Iran. The signatories of the letter emphasized that the introduction of such a tax “would send a clear signal that those “those who profit from the consequences of war should shoulder their share of the burden borne by society.”
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The letter was sent to the European Commission on Friday.
Polish idea
The proposal is similar to the declaration of the Polish government made as part of the CPN (Fuel Prices Lower) initiative. Prime Minister Donald Tusk announced that if excessive profits of fuel companies are found, it will be possible to apply a tax on excess profits (so-called windfall tax). This solution would counteract situations in which an increase in raw material prices translates into disproportionately high company margins.
Germany also wants a tax
In Nieczmech, German Vice-Chancellor and Finance Minister Lars Klingbeil (SPD) appealed to the Christian Democrat coalition partners to take further action to combat rising fuel prices. Among the ideas he postulates are: imposing a tax on windfall profits on fuel companies.
From Wednesday, gas stations in Germany can only increase prices once a day, at noon. Failure to comply with the new rules will result in fines of up to PLN 100,000. euro.
The Social Democrat said in a letter to representatives of the Christian Democrat CDU, Chancellor Friedrich Merz and the head of the Ministry of Economy Katherina Reiche that he expected that additional steps would be needed “to stop rising inflation at an early stage.”
He therefore called for the introduction of a tax on windfall profits, which would limit excessive profits of companies benefiting from the crisis. Moreover, he supported a flexible cap on fuel prices and an increase in the tax relief for those who commute to work by car.
Despite new regulations limiting fuel increases, fuel prices in Germany increased again on Thursday afternoon. A liter of E10 petrol cost 2,198 euros, which was about 9 cents more than before. 12. The price of diesel increased by about 11 cents at the same time, to 2,415 euros, ADAC reported. It was noted that these are not average daily prices, but maximum values.
