Contribution on superprofits: 2 billion euros paid by TotalEnergies in Europe

In 2022, TotalEnergies will be required to contribute more than two billion euros toward the solidarity payment on the energy firms’ profits. According to the CEO of TotalEnergies, Patrick Pouyanné, “we exceed two billion new taxes in Europe in the context of the energy crisis,” according to the European Union and the United Kingdom. The interview was published this past weekend in the Dutch- and French-language newspapers De Tijd and L’Echo in Belgium.

The organisation had earlier predicted “at one billion euros the impact of the European solidarity tax” in 2022 when it was announced that it will be imposed in six EU nations, including France, Germany, Belgium, Luxembourg, and the Netherlands and Denmark for exploration and production activities. The boss said, “Refining lost money for years, and now that we’re starting to make money, it’s overtaxed as superprofit, when it’s just profit.”

 

The French juggernaut won’t contest this contribution, though, at the European level. He will, however, “draw the consequences,” summarizing that “in the United Kingdom, we will invest less.” Patrick Pouyanné also confirmed that in 2022, his company would pay “33 billion dollars” in worldwide taxes and tariffs. We are in the top 10 global contributors, he claimed.

record revenue

When oil and gas corporations release their yearly results, the discussion surrounding their “superprofits” is at risk of reviving. TotalEnergies has already disclosed a third-quarter profit of 6.6 billion dollars, which is a new record. “I recognize that this is a social, collective, and challenging topic. And I agree with you that it’s annoying, Pouyanné says.

The producers and distributors of gas, coal, and oil are making enormous profits as a result of the spike in prices following the conflict in Ukraine, but the European Commission had already made it clear at the end of September that it wanted to demand a “temporary solidarity contribution” from them. While taking into consideration the steps taken by the States taxing these advantages already, it must be set at 33% of the share of the superprofits of 2022, i.e. profits more than 20% higher than the average for the years 2019–21. It has been incorporated into France’s 2023 budget.

The Twenty-Seven would have needed to vote unanimously in favor of any new tax provision at the European level, which is a more difficult and dangerous process than adoption by qualified majority, thus the Commission took care to avoid using the phrase “tax.”

By Editor

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