Tax on windfall profits? Europe is looking at the hands of oil producers

French President Emmanuel Macron said in Armenia on Monday that European countries would have to respond to “excessive” oil profits or what he described as “somewhat predatory” behavior. However, he assessed that for now producers are not raising prices on purpose.

Macron expressed his belief that at this stage there are no producers anywhere who would raise prices “deliberately”. The French president spoke after the meeting of the European Political Community in Yerevan, the capital of Armenia.

In France, the discussion on the tax on excessive profits obtained by oil producers arose in the context of the income obtained by TotalEnergies during the war in the Middle East (the company's net profit in the first quarter increased by 51%). A bill moving in this direction was submitted by the Socialist Party.

The far-right National Rally also spoke in favor of taxing such exceptional profits. The leader of the movement, Marine Le Pen, stated that she considered it necessary if limiting fuel prices at gas stations turned out to be insufficient, taking into account the purchasing power of citizens. The extreme right demands a reduction in VAT on fuels in the context of their high prices.

The French government, led by Prime Minister Sebastien Lecornu, does not envisage a VAT reduction or special taxation of oil companies. Lecornu called on TotalEnergies to “generously” cap fuel prices at gas stations in order to redistribute the windfall profits.

From Paris Anna Wróbel (PAP)

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