Austria tightens taxes on energy companies' profits.
The Austrian government has reversed its plan to impose a special tax on electricity production companies, but it has decided to tighten taxes on the excess profits of these companies. According to the new decision, a tax rate of 95% will be imposed on profits exceeding 90 euros per megawatt/hour, instead of 120 euros previously. The decision will also include new power plants such as wind farms, with the same tax rate applied. This system will be implemented starting April 1, with the tax calculated retroactively for a full year.
The government confirmed that this step aims to achieve savings of 200 million euros annually without raising energy prices or affecting investments in renewable energy sources. The ruling parties welcomed the agreement, with the SPÖ party considering that the decision ensures a fair contribution from energy companies to the state budget, providing additional funding for sectors such as health and education.
On their part, energy companies expressed their relief at the cancellation of the special tax, but criticized the tightening of taxes on excess profits, considering that any government intervention in the energy market represents a burden on the sector.