From The Rio Times · Juan Martinez · · 2m
EU Considers Windfall Tax on Energy Profits
Six EU nations push for new tax on oil and gas windfall profits, risking higher costs for US and Latin American exporters.
In brief
Six EU nations push for new tax on oil and gas windfall profits, risking higher costs for US and Latin American exporters. Six EU countries want a temporary tax on oil and gas profits, potentially raising costs for US and Latin American energy firms. Originally reported by The Rio Times.
EU Windfall Tax Discussion
Six EU governments asked for an EU-level discussion of a new tax on oil and gas windfall profits.
Why It Matters
A new levy could cut after-tax returns on european energy sales and trigger contract talks for us and latin american lng and crude exporters.
2022 Tax Numbers
The 2022 eu levy had a minimum rate of 33% and collected euro 26.15 billion (us$29.4 billion) over tax years 2022 and 2023.
Who Pushes for Tax
Austria, Germany, Italy, Poland, Portugal and Spain launched a joint initiative asking for an eu-level discussion of extra taxes on oil and gas windfall profits.
Poland's Action
Poland signed a law on 1 october 2026 charging 60% of excess profits from liquid fuel sales.
Commission Stance
Commissioner valdis dombrovskis says member states are better placed to set such taxes.
2022 Tax Scope
The 2022 tax targeted taxable profits exceeding 20% above the four-year average profit baseline.
US and Latin American Impact
US energy firms with eu subsidiaries could face higher tax exposure if a new levy follows the 2022 model.
Contract Implications
Long-term lng and oil contracts may face disputes over who bears new tax costs.
What to Watch
The commission-led working group will determine if a formal proposal follows.
Poland's Rate
Poland's 2026 law charges 60% of excess profits from liquid fuel sales.
2022 Tax Collection
The 2022 tax collected euro 26.15 billion (us$29.4 billion) across tax years 2022 and 2023.
Territorial Scope
The tax could target eu-based producers, permanent establishments, or trading profits booked in eu jurisdictions.
Effect on Exporters
Exporters selling crude or lng directly from latin america to europe may not face the tax under a 2022-style model.
What It Means for You
Check if your energy operations are eu subsidiaries or permanent establishments before a new tax.
The headline
Six EU countries want a temporary tax on oil and gas profits, potentially raising costs for US and Latin American energy firms.
