The German government is said to be planning to ask the country's oil, coal and gas companies to pay 33% of windfall profits, potentially generating a revenue of 1-3 billion euros, Reuters reported.
Dozens of energy companies will see their 2022 and 2023 profits get affected by the levy, known as "EU energy crisis contribution", which would be implemented by the end of 2022.
If implemented, the new levy will affect oil, gas and coal companies whose profits for the current year and the coming one exceed by 20% or more than their 2018-2021 average.
However, the implementation could be challenged legally due to a violation of the general principle of equality through an unjustified unequal treatment of companies.
Also, according to Katharina Beck, spokeswoman on financial matters for the Greens, the planned levy can be circumvented on a large scale by companies moving profits abroad.
The planned levy is different from another one Germany announced on November 22 which would apply to electricity windfall profits from September 1, 2022, and last at until at least June 2023.
The new levy would affect oil, coal and gas companies and refineries whose profits for this and next year exceed by 20% or more their 2018-2021 average, a draft finance ministry document seen by Reuters showed.
(Writing by Alex Guo Editing by Tammy Yang)
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