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Finnish energy companies could pay windfall tax for 2023

(EurActiv, 25 Nov 2022) Finland’s five-party government is debating a plan to impose a windfall tax on energy companies for 2023, though government and industry remain split on the idea, Finance Minister Annika Saarikko revealed in an interview published Thursday.

EU energy ministers agreed at the end of September that energy companies whose business rely 75% on fossil fuels should be taxed for their excess profits, however, no Finnish energy company currently fits the category.

Still, the Finnish government is currently debating a windfall tax it hopes will enter into force at the start of 2023, Annika Saarikko said in the interview for Keskisuomalainen, noting that a proposal may be sent to parliament before Christmas.

While Saarikko did not give an estimate on how much the tax would gather, she was adamant about the tax not negatively impacting renewable investment and said it would not harm the normal operations of companies.

But the government and industry are divided on the matter with the staunchest advocates in government being the Left Alliance. On the business side, small and medium-sized enterprises (SMEs) have spoken in favour of the proposal, while the energy industry believes such a tax would hold back investments in green energy.

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EurActiv, 25 Nov 2022: Finnish energy companies could pay windfall tax for 2023