Finland to introduce new tax on excessive profits of energy companies

It comes as continent battles a crippling energy crisis

Finland to introduce new tax on excessive profits of energy companies (AP)

Finland is preparing to introduce a new temporary tax on excessive profits of energy companies, the country’s finance minister has said.

It comes as Europe is facing a sweeping energy crisis triggered by Russia’s war in Ukraine and has resulted in multiple countries imposing curfews to conserve energy.

In September, EU countries agreed to back levies on energy companies’ windfall profits resulting from Europe’s energy market crunch but left it for individual member countries to decide how to implement the taxation.

Finance minister, Annika Saarikko, said Finland’s plan is to introduce an additional tax on energy profits temporarily for a year, describing it as similar to a windfall tax in an interview with local news outlet Uutissuomalainen.

“Our goal is to enforce a temporary additional tax on electricity profits at the turn of the year,” Saarikko wrote on Twitter.

She gave no details on the tax but said the finance ministry was working on it.

Earlier this month, the International Energy Agency said Europe could face a severe natural gas shortage next year and needs to act now to reduce use, warning against complacency in an energy crisis triggered by Russia‘s war in Ukraine.