Madrid — Oil and gas group Cepsa will challenge Spain’s planned windfall tax on energy companies in court if the legislation is approved as currently proposed, CEO Maarten Wetselaar said on Friday.
The Spanish parliament is currently debating a bill introduced by the leftist ruling coalition to establish a temporary levy on banks and large energy companies, aiming to raise 7 billion euros ($7.19 billion) in 2023 and 2024 which would be used to ease cost-of-living pressures.
“This tax is disproportionate and poorly designed because it taxes revenues and not profits, and the two-year span in an environment of high volatility creates tremendous uncertainty,” he said.
On Thursday, Spain’s ruling coalition submitted amendments to its tax proposal for banks but made no changes to the planned levy on big energy companies.
Cepsa said that adopting the European tax model, a levy on profit increases, was the best way to protect the competitiveness of Spanish companies.
Follow us on twitter
