Consequences of excess profit taxes or windfall taxes

The surge in energy prices in Europe since 2021 has led to substantial windfall profits in the energy sector. The study requested by FISC committee analyses the design and functioning of windfall profit taxes for energy suppliers in the EU, in particular with respect to the Commission's recommendation to the Member States. It also quantifies the potential tax revenues and discusses how these can be redistributed, e.g. to tackle the hardship caused by the energy crisis.