Juncker Pushes Windfall Tax On Oil Companies' Profits

by Ulrika Lomas, for LawAndTax-News.com, Brussels

08 May 2006

Speaking to reporters following a meeting of European Union finance ministers last week, chair of the meeting and Luxembourg's Prime Minister, Jean Claude Juncker appeared to favour the idea of a windfall tax on the rapidly increasing profits of oil firms.

Speaking late on Thursday, Mr Juncker referred to the oil firms as "big gainers" as a result of rising energy prices, and suggested that the record profits announced by some of the largest oil firms are "starting to irritate parts of our public opinion".

According to Bloomberg news, he went on to add that:

"We are only at the start of our reflections."

However, reports have suggested that opinion is divided on the matter amongst EU member states, much as it is amongst politicians in the United States, where the issue of a windfall tax on oil companies' profits is also under discussion.

Speaking ahead of the meeting, Austria's Finance Minister, Karl-Heinz Grasser observed, according to Reuters, that:

"It's not realistic. I think it's not really a proposal that has a big chance of being implemented. If it is possible to have such a tax on a worldwide basis, but I really state on a worldwide basis, then I think we could discuss it."

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