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Exxon: US energy company sues EU over excess profit tax


The tax undermines investor confidence: Exxon is taking legal action against the EU's temporary random profit tax for energy companies - and is threatening further action.

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The US group Exxon (symbol photo) has sued the EU


The energy company Exxon has sued the EU over the new tax on excess profits.

The European Union has thus exceeded its powers, said a spokesman for the US group on Wednesday.

The tax is counterproductive, makes investments unattractive and undermines investor confidence.

Exxon will include the tax in its considerations for future billion-dollar investments in European energy supply.

Exxon CFO Kathryn Mikells said in a conversation with analysts on December 8 that the EU tax could cost her company at least two billion dollars by the end of 2023.

Exxon announced net income of just under $20 billion for the third quarter at the end of October.

High energy prices

The Financial Times newspaper first reported on the lawsuit.

A statement from the EU Commission was initially not available.

The high energy prices this year brought the industry high profits, but also contributed significantly to the high inflation in many countries.

Accordingly, calls for an excess profit tax were heard in politics.

In October, Chevron CFO Pierre Breber warned against taxing oil production.

This would deter investors, he told Reuters news agency.

In September, the EU countries agreed on a temporary random profit tax for oil, natural gas and refinery companies.

Germany is implementing the requirement in the Annual Tax Act 2022: profits that exceed the average profit by one fifth compared to previous years are taxed at 33 percent.

The revenue, estimated at one to three billion euros, is intended to help finance the electricity price brake for consumers.


Source: spiegel

All business articles on 2022-12-28

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