Surplus profits: a contribution rather than a tax - Economic Policy

Surplus profits: a contribution rather than a tax – Economic Policy

The federal government no longer intends to capture part of the surplus profits made by energy producers through a tax, but will instead examine the possibility of a contribution, Deputy Prime Minister Petra De Sutter (Groen) said on Wednesday. at the microphone of the VRT-radio.

The consultation committee, which brings together federal and federated entities, is to meet this Wednesday afternoon on the subject of the energy crisis. During a meeting of the restricted ministerial committee (kern) prior to this Codeco, it was already decided to recover part of the surplus profits made by the producers thanks to the current crisis.

The track of taxation had been mentioned for some time, even it posed a series of legal, technical and political problems as well. Following legal advice, however, the idea of ​​a tax would be abandoned for a contribution mechanism.

According to Ms. De Sutter, this could deliver between 1 and 1.5 billion euros. An amount which, according to her, must return to end consumers.

The role of banks in the crisis will also be examined, in particular to finance the insulation of buildings or to give some respite to owners who are struggling to repay their mortgage loan. The issue of business support is also on the agenda.

The consultation committee, which brings together federal and federated entities, is to meet this Wednesday afternoon on the subject of the energy crisis. During a meeting of the restricted ministerial committee (kern) prior to this Codeco, it was already decided to recover part of the surplus profits made by the producers thanks to the current crisis. The track of taxation had been mentioned for some time, even it posed a series of legal, technical and political problems as well. Following legal advice, however, the idea of ​​a tax would be abandoned for a contribution mechanism. According to Ms. De Sutter, this could deliver between 1 and 1.5 billion euros. An amount which, according to her, must be returned to end consumers. The role of banks in the crisis will also be examined, in particular to finance the insulation of buildings or to give some respite to owners who are struggling to repay their mortgage loan. The issue of business support is also on the agenda.

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