The lawsuit is a major response to the tax from the oil industry that has reaped record profits this year as western governments have sought to bring down skyrocketing consumer energy bills. — Reuters
HOUSTON: Exxon Mobil Corp is suing the European Union (EU) in a push to eliminate a new windfall tax against oil groups, arguing the bloc does not have legal authority to impose the levy.
The lawsuit is a major response to the tax from the oil industry that has reaped record profits this year as western governments have sought to bring down skyrocketing consumer energy bills.
The action could jeopardise the tax, which would raise billions to bring down consumer energy costs. Exxon said the lawsuit was filed Wednesday by its Dutch and German subsidiaries at the EU’s General Court in Luxembourg.
The tax is counterproductive, Exxon spokesperson Casey Norton said, and would “undermine investor confidence, discourage investment, and increase reliance on imported energy and fuel products.”
Exxon chief financial officer Kathy Mikells told investors recently the windfall taxes could cost the company at least US$2bil (RM8.9bil) through the end of 2023. — Bloomberg
