250mln euros for Pensioners from Windfall Tax on Refineries

Approximately 250 million euros are expected to be earmarked for low-income pensioners’ allowances after the Greek government imposed a 33% extraordinary tax windfall on domestic refinery-petroleum companies’ excess profits, which is expected to bring in roughly 300 million euros in the state coffers.

Greek PM Kyriakos Mitsotakis affirmed the distribution of the money in an interview with Athens-based radio station Real PM, calling the move a “fair and ethically justified” policy.

According to an announcement from the Ministry of National Economy and Finance released earlier, following the imposition of the levy on refining companies for the year 2022, an extraordinary Temporary Solidarity Contribution (TSC) will be introduced for the companies based on the excess profits of the tax year 2023.

The TSC will be estimated based on the excess profits of the tax year 2023, as defined by Regulation (EU) 2022/1854, specifically 33% on taxable profits exceeding 20% of the average results from the years 2018 to 2021.

The Greek Prime Minister stated in the interview: “These revenues will support the budget and will be directed towards vulnerable social groups, especially retirees who did not see an increase in their pensions.”

The PM stressed that the decision for the windfall tax on refinery companies’ excess profits in 2022 was in the purview of the state’s right based on European regulation, adding that the Ministry of Finance decided to go ahead with the move. “I consider it a fair decision for social justice,” he noted.

Mitsotakis went on to reject claims his government was seizing business profits, or punishing entrepreneurship. “Our goal is to support the public investment program and our most vulnerable fellow citizens,” he concluded.

Source: tovima.com