CAN Europe supports a tax on the profits of the fossil fuel industry. It could be a permanent tax, or a temporary tax subjected to extension over time after assessing its impact. In addition to adopting an EU-coordinated tax, the EU should champion a tax on the fossil fuel industry at the global level.
An EU Regulation would ideally be needed to ensure a coordinated introduction of such a tax in all Member States. This would reduce the scope for aggressive tax planning and tax avoidance (profit shifting) within the EU. The solidarity contribution on the fossil fuel industry (enshrined in the 2022 EU Council Regulation on an emergency intervention to address high energy prices) was providing a common frame with minimum common requirements (minimum tax rate, definition of windfall profit, etc) but left room for Member States to design the tax, taking into account national circumstances. Such an approach combining a common frame and national leeway seems a good precedent to build on.
➡️ Read also the CAN Europe discussion paper on fossil fuel tax options
