Contribution on Surplus Profits from the Fossil Fuel Sector

On 6 October 2022, Council Regulation (EU)2022/1854 on an emergency intervention to address high energy prices was adopted. The regulation introduces an instrument known as a ‘temporary solidarity contribution’ imposed on the oil, gas, coal and refinery sector as a means of recovering surplus profits generated from the fossil fuel crisis. The regulation also defines how the revenues are to be redistributed amongst the EU Member States. The aim of the article is to show that the discussed solidarity contribution has a fiscal nature and a legal attributes of a tax. It belongs to the category of public finance instruments aimed at redistribution of resources by means of tax and benefit interventions. The paper discusses in detail those provisions of the regulation that govern the elements of the solidarity contribution, indicating the tax nature of this measure.

