Belgian Energy Minister Tinne Van der Straeten presented her proposal to the government, which includes levying excess earnings tax from energy companies. According to the proposal, revenues of energy companies above 130 euros per megawatt-hour for the period from 1 January 2022 to 31 December 2023 will be considered “excessive earnings”. Belgium aims to collect 4.7 billion euros in tax in this way. Belgium plans to collect 4.7 billion euros in taxes from high-earning electricity producers and fossil fuel companies.

 

Belgian Energy Minister Tinne Van der Straeten presented her proposal to the government, which includes levying excess income tax from energy companies operating in the country.

According to the proposal, the revenues of those producing electricity from renewable, nuclear and coal sources will be limited to 130 euros per megawatt hour between January 1, 2022 and December 31, 2023. The electricity sales of these companies above the said price will be considered as “excessive earnings”. Taxes will also be collected from the fossil fuel sector, which provides high profits, under the name of “solidarity contribution”. This contribution will cover areas such as natural gas, oil, coal and refineries.

The tax will be used for those affected by the crisis

With this application, 1.8 billion euros in 2022 and 2.9 billion euros in 2023 will be provided from electricity producers and fossil fuel companies. With 4.7 billion euros to be collected this year and next year, households and businesses most affected by the energy crisis will be supported.

 

The proposal must be approved by the government in order to enter into force.

EU member states agreed on measures including the mandatory reduction of electricity demand, limiting the incomes of low-cost electricity producers and taking contributions from fossil fuel producers against the energy crisis last week.

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