Legislation for windfall tax on energy companies published
Legislation providing for a windfall tax on massive profits in the energy sector has been published.
The Energy (Windfall Gains in the Energy Sector) (Temporary Solidarity Contribution) Bill 2023 provides for a “temporary solidarity contribution” on windfall gains made in 2022 and 2023 by the fossil fuel production and refining sector as a result of the war in Ukraine.
The windfall tax is expected to raise between €200 million and €450 million, which the government said can be used towards financial supports to households and businesses affected by high energy prices and may also be used to support investment in areas such as renewable energy.
Environment, climate and communications minister Eamon Ryan said: “This bill is welcomed as it will collect significant proceeds that can be used to ease the impact of high energy prices on vulnerable energy consumers.”
Mr Ryan also announced his intention to bring the Energy (Windfall Gains in the Energy Sector) (Cap on Market Revenues) Bill 2023 to his cabinet colleagues in July.
The decision to divide the proposed Windfall Gains Bill into two separate bills was taken “to ensure that the collection of the temporary solidarity contribution (TSC) from the fossil fuel production and refining sector could proceed faster, before the summer recess”, his department said.