ExxonMobil Sues EU Over Investment-Destroying Windfall Profit Tax

ExxonMobil Corp. is suing the European Union on the grounds that the 33% windfall tax will hinder investment. Exxon’s chief financial officer Kathryn Mikells said the tax could cost $2 billion between now and the end of next year.

Exxon Mobil Corp is suing the European Union on the grounds that the tax will hinder investment and end up being “counter-productive”, according to media reports.

According to the Financial Times, the first to report the story, Exxon filed the lawsuit at the European General Court in Luxembourg City on Wednesday through its German and Dutch subsidiaries. The lawsuit challenges the European Union Council’s legal authority to impose a windfall tax using emergency powers to force member state approval of the move.

The European Union windfall tax gives the bloc the authority to place a 33% levy on energy company profits for 2022.

Reuters cited Exxon spokesperson Casey Norton as saying on Wednesday that Exxon would be accounting for the windfall tax in its future multi-billion-euro investments, warning that the tax was outside the authority of Brussels and that it would end up being a destructive force for investor confidence.