Many countries fail with high profit tax initiatives
Economics Minister Robert Hebek in the Bundesrat. Demands from some federal states for an additional profit tax did not find a majority in the state chamber.
Photo: Michael Kepeller/DPA
The energy crisis affects many companies. However, some make huge profits in this position. Any additional gain could have been tax deductible. But there is no majority.
7/8/2022 at 12:39 p.m
Berlin. Many countries have failed the Federal Council with demands for a special tax on high additional profits from companies from the Ukraine war. Proposals from Bremen, Berlin, Mecklenburg-Western Pomerania and Thuringia to introduce an additional profit tax did not find a majority in the state parliament on Friday.
The federal government is also divided on the issue: while the SPD and the Greens remain open, the FDP and Finance Minister Christian Lindner recently expressly rejected such a tax.
Four states wanted the Bundesrat to ask the federal government to submit a proposal to temporarily introduce an additional profit tax for 2022. This was intended to tax or levy high profits from the crisis, especially in the energy sector. State relief measures are then to be financed from revenues. But it’s not just about money, but also about a disciplining, market-regulating effect, argued Bremen’s Prime Minister Andreas Bowenschult (SPD).
© dpa-infocom, dpa:220708-99-953897/2 (dpa)