Wednesday, July 2, 2025

Germany to Impose 33% Windfall Tax on Oil, Coal, and Gas Companies

The German government unveiled yet another windfall tax this week, this time targeting profits generated by oil, coal, and gas companies.

According to government sources cited by Reuters, Germany is planning to impose a second windfall tax on the country’s energy providers, which would generate revenue anywhere between €1 billion and €3 billion. The new levy, which is separate from the one unveiled on Tuesday targeting electricity companies, seeks a 33% windfall tax on oil, coal, and gas profits generated between 2022 and 2023 that are at least 20% higher than their 2018-2021 average.

The German government plans to introduce the tax, dubbed the ‘EU energy crisis contribution,” before the end of the year, but officials concede it may be difficult to implement because large companies would transfer their profits abroad. Moreover, “the draft of the finance ministry for windfall profit levy for oil and gas companies falls well short of what is necessary,” said Germany’s Green party financial spokesperson Katharina Beck. According to her, the tax should be anywhere between 60% and 80% in order to be on par with the 90% levy targeting electricity suppliers.

German energy lobbies, on the other hand, argued that the government’s levies are unattainable and too bureaucratic. Instead, the tax should be applied to profits rather than revenues, given that companies’ input costs have increased in unison with the surge in natural gas prices.

Information for this briefing was found via Reuters. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.

One Response

  1. Stupidest thing they could ever do taxing that which they most need immediately. Oil companies in Germany should leave relocating their head offices to Friendlier jurisdictions and reduce the amount of oil that they sell to Germany, ditto for coal.

    Does the German government want to have all of their Forests chopped down which will be much higher polluting than even coal? Focus instead on ensuring energy security throughout the winter and going forward and that no lives are lost due to lack of energy rather than trying to get a few billion dollars more out of energy providers.

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