In an attempt to tackle the energy crisis in Europe, the European Union has proposed tax levies on energy firms’ windfall profits. The decision to finalize these taxes will be concluded on Friday, along with a discussion on future propositions to manage the energy crunch.
It has been anticipated that the EU might apply a cap on gas prices. The 27 members of the EU are assembling on Friday to discuss prepositions given by Brussels. This meeting is a desperate attempt to manage the spur in energy prices that has been fueling up inflation. Economies are now on the edge of a recession. Moreover, the Eurozone is to expect a comparatively colder winter as economies struggle with energy supplies.
The tax levies will be imposed on the surplus profit of fossil fuel companies. Another tax will be imposed on the profit made by low-cost power producers benefiting from the soaring electricity costs. And a necessary 5% cut will be implied during peak price hours.
Moreover, several major European Economies including France, Italy, and Poland have proposed that Brussels imply a price cap on wholesale gas transactions.
In addition to this Germany set aside 200 billion euros in an effort to support companies and domestic consumers from the effects of surging energy prices. Moreover, the country has also imposed a gas price brake in addition to cuts in fuel sales tax.