EU backs Italian oil industry windfall tax proposal

Several countries are willing to consider an Italian proposal of hitting oil
companies with a windfall tax, following growing calls for government action
amid soaring oil and food prices.

Giulio Tremonti, Italy’s newly installed economy minister, suggested at a
meeting with his EU counterparts in Luxembourg the idea of a so-called ‘Robin
Hood’ tax which could be applied to oil companies and used to help those hit
hardest, according to

‘Given the dramatic needs of the lowest social levels, for us this kind of
tax makes sense,’ Tremonti told reporters.

Christine Lagarde, French finance minister, said at the meeing: ‘It’s
certainly an intelligent proposal but the impact and its application have to be
measured, not only in terms of record profits but also in terms of (the impact
on) investment,’ she said.

Further reading:

Union urges PM to impose windfall tax on oil companies

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