In Greece, the energy minister says the country will impose additional taxes on energy companies.
Taxing profits
Greece identifies windfall profits from higher energy prices. However, Greek households are under pressure from inflation, which is at its highest level in nearly 30 years. Thus, the government instructs the country’s energy regulator RAE, to identify windfall profits.
The objective is to increase windfall profits based on companies’ gross margins resulting from higher gas prices. Thus, the profits will be used to offset higher energy bills for consumers. Kostas Skrekas, Minister of Energy in Greece, states:
“From the beginning of this great test for Europe, the government and Prime Minister Kyriakos Mitsotakis have committed themselves (…) to not allow any form of profit.”
Government assistance
Greece plans to tax profits at 90%. Thus, for the period covering October 2021 to June 2022, this represents €375 million according to the RAE survey. Athens wants to maintain affordable prices on consumer bills until the end of this pan-European energy crisis.
So far, Greece allocates more than €9 billion to household subsidies for electricity. In addition, other measures have been in place since last September to help individuals. Businesses also benefit from measures to pay their utility bills.
