The Austrian authorities plans to introduce a brand new windfall tax on vitality firms, Vice Chancellor Werner Kogler and Finance Minister Magnus Brunner introduced at a press convention on Friday.

The levy will quantity to 40% of extra revenue for oil and fuel firms, in keeping with the announcement.

As Kogler defined, the federal government will take an organization’s common revenue between 2018 and 2021 as the idea for the tax. If present revenue is greater than 20% above this common, 40% will probably be skimmed as a windfall tax. Nonetheless, for the reason that company tax on this revenue will proceed to be due, firms will find yourself giving up a complete of 65% of those income, Kogler added.

He famous additionally that if an organization can show that it’s investing in renewable vitality, the levy drops from 40% to 33%.

Along with the brand new windfall tax on oil and fuel firms, energy suppliers can even see extra income taxed. Utility firms will probably be topic a tax charge of 90% on any income exceeding €180 per megawatt-hour, Kogler defined.

Each levies will probably be in place till the tip of 2023. The tax on oil and fuel firms will apply retroactively, ranging from July 1, whereas the one for energy suppliers will take impact on December 1, 2022.

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