The introduction in Cyprus of taxation of energy companies over excess or windfall profits which started with the EU energy crisis will be discussed before the House Commerce Committee in a week’s time.
This is what Philenews reported on Monday, adding that present at the debate will be the Finance Minister as well as the Governor of the Central Bank of Cyprus.
Participants will discuss novel ways to tax windfall profits based on the increase in market capitalization of energy companies.
The European Commission has recommended that Member States look into this issue sparked by the invasion of Ukraine by Russia in February 2022.
Because the ensuing war brought hardship to the global economy and the upsurge in energy prices has dramatically increased firms’ input costs and households’ energy expenditures.
For some companies, however, this conflict has come as an opportunity since many energy firms have seen their profits and stock prices rise, earning rents from the increase in oil and gas prices.
At the same time, Akel, Edek, Elam and the Green party are all proposing that commercial banks should be also taxed on their excess profits.