Windfall taxes net state “several tens of millions”

 In Companies, Energy, News, Windfall tax

Portugal’s minister of Finances estimates that the windfall tax on energy and food distribution companies will net the treasury “several tens of millions of euros”.

Fernando Medina has rebuffed criticisms about the windfall tax by saying: “The European framework makes its application mandatory. We are applying ours”.
Up until the end of year, a new extraordinary contribution on energy and food distribution sectors that register an increase in profits of 20% or over the past four years will be liable to pay the windfall tax.
Regarding the new Temporary Solidarity Contribution an applicable tax of 33% will be applied on the “extraordinary profits calculated for the taxation periods on IRC starting from the tax years of 2022 and 2033”, according to the measure.
“The contributory framework (in Portugal) will strictly follow the European framework. This is a contribution that is equally designed within the European framework from which national legislation takes its lead”, said Fernando Medina at the Outside of the Box Meeting organised by Caixa Geral de Depósitos (CGD) on Monday.
Medina also explained that he didn’t extend the windfall tax to the banking sector given that it already paid special contributions.