EU Advocate General finds energy windfall tax lawful

An Advocate General at the European Court of Justice (ECJ) has issued an opinion stating that the windfall profit tax imposed on energy companies during the 2022 and 2023 energy crisis was lawful. In his legal opinion submitted in Luxembourg, Advocate General Athanasios Rantos described the measure as a temporary exception.

The tax was introduced as an emergency solidarity contribution by the Council of the European Union following the surge in energy prices caused by the war in Ukraine. The regulation required oil, gas, coal, and refinery companies to pay a levy on extraordinary profits—specifically those exceeding 20 percent of the average values from 2019 to 2021—at a rate of 33 percent.

While member states implemented these rules into national law, companies in Belgium, Ireland, and Italy filed lawsuits challenging the legality of the measures. Germany collected nearly two billion euros in 2022 and approximately 465 million euros in 2023 through this contribution. Although the Advocate General's opinion is not a final judgment, the ECJ judges frequently follow such recommendations in their final rulings.