By Louis Goss
ExxonMobil has filed a lawsuit against the EU in a bid to overturn the trading bloc’s plans to impose a windfall tax on energy companies.
The US oil major is seeking to challenge the EU’s authority to impose a 33 per cent levy on energy companies’ profits during the fiscal year 2022.
Two of Exxon’s Dutch and German subsidiaries filed the lawsuit against the EU in the European General Court in Luxembourg on Wednesday, the Financial Times first reported.
The lawsuit seeks to challenge the EU’s authority to impose a windfall tax on energy sector profits, in arguing any levy must be approved by individual member states.
The EU first set out plans for a windfall tax in September, with a view to charging a levy on “abnormally high profits” generated due to soaring energy prices following Russia’s war in Ukraine.
The EU is hoping to generate €140bn in revenues from the 33 per cent tax on profits, which the bloc intends to funnel back to households and businesses.
The European General Court will decide whether to rule on Exxon’s lawsuit. However, any future judgement may be appealed via the European Court of Justice.
An ExxonMobil spokesperson said: “Our challenge is targeted only at the counter-productive windfall profits tax, and not any other elements of the package to reduce energy prices.”
“This tax will undermine investor confidence, discourage investment, and increase reliance on imported energy and fuel products.”
“European industries already face a very real competitiveness crisis and governments should be supporting the production of reliable and affordable energy.”
“We will continue to work with EU leaders to address these issues. Thoughtful policy is critical.”
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