European leaders are under pressure to help households with soaring power bills. Taxing energy companies is potentially ineffective and replete with unwise incentives. The idea could nevertheless catch on, writes gfhay
Italy is likely to increase corporate taxes on energy companies that have benefitted from surging power prices, Italian Industry Minister Giancarlo Giorgetti said on Jan. 12.
“I think the government will go in that direction,” Giorgetti said when asked whether Rome would raise corporate tax on energy companies as it did in 2008, when there was an oil price spike. “The extra profits must somehow contribute to general taxation to allow measures to be taken to help the less well-off,” Giorgetti said.
Italian Prime Minister Mario Draghi said on Jan. 9 that companies which had benefitted from spiking prices should share profits with society.An illustration picture shows electricity meters on a board in a private home in Bordeaux, southwestern France, November 10, 2014.
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