Robert Besser
30 Nov 2022, 16:21 GMT+10
ROME, Italy: A draft of the government's 2023 budget seen by Reuters indicates that Italy plans to charge energy companies that have benefited from the surge in oil and gas prices with a 50 percent one-off windfall tax on profits next year.
The levy has a rate equal to 50 percent of their 2022 corporate income, some 10 percent higher than the average income reported between 2018 and 2021. It also has a ceiling equal to 25 percent of the value of net assets at the end of 2021.
After the release, shares in ENI and Enel were down some 2 percent and 1.7 percent, respectively, below Italy's blue chip index, but broadly in line with Europe's STOXX index for the energy sector, which fell 1.7 percent.
Rome expects to raise some $2.66 billion from the tax, which replaces a similar levy in force this year that caused criticism and refusals to pay from multiple firms, and follows a framework proposed by the European Commission.
Under the new terms, some 7,000 producers and sellers of electricity, natural gas and petrol products must pay the amount due by mid-2023.
Energy companies have until 30th November to make the final payment on the current windfall tax, which has a 25 percent rate and is calculated on the value of operations subject to the VAT sales tax.
Based on the 40 percent down payment made by the end of August, total revenues are expected to be worth around $5 billion, which is less than half of the preliminary estimate of the Treasury.
Get a daily dose of The US News news through our daily email, its complimentary and keeps you fully up to date with world and business news as well.
Publish news of your business, community or sports group, personnel appointments, major event and more by submitting a news release to The US News.
More InformationWASHINGTON, DC - FBI agents on Wednesday searched for classified documents at U.S. President Joe Biden's vacation retreat in the ...
WASHINGTON D.C.: The White House said this week that Tesla Chief Executive Elon Musk met with John Podesta, a Democratic ...
MANILA, Philippines: In an effort to attract more tourists, President Ferdinand Marcos has approved a value-added tax refund program for ...
TRIPOLI, Libya: Italian prime minister Giorgia Meloni held talks on energy and migration in Libya this weekend, which are major ...
MIAMI, Florida: This decade, the US south is expected to see more new residents than any other region in the ...
NEW YORK CITY, New York: After reporting record revenues in the fourth-quarter of 2022, US airlines expect strong travel demand ...
NEW YORK, New York - The U.S. dollar crumbled on Thursday after first posting gains. The late afternoon sell off ...
NEW YORK, New York - Wall Street dove into the red Wednesday after the U.S. Federal Reserve Open Market Committee ...
WASHINGTON D.C.: In the latest indication that its interest rate hikes are slowing the US economy, the Federal Reserve's main ...
BEIJING, China: As COVID-19 restrictions and a slowing economy curbed consumer demand in 2022, China's smartphone sales witnessed a record ...
TOKYO, Japan: After struggling for years to promote its products amid protests from conservationists, Japanese whaling company Kyodo Senpaku announced ...
NEW DELHI, India: Marking a year since the Tata Group took control of Air India, the former state-run carrier has ...