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Widespread calls for windfall tax amid 'war profiteering' from energy companies

Widespread calls for windfall tax amid 'war profiteering' from energy companies
10/08/2022 Minister for Finance, Paschal Donohoe TD during a media brieifng following the publication of the Tax Strategy Group (TSG) papers. at the Department of Finance, Government Buildings, Dublin. Gareth Chaney/ Collins Photos

Jobs will be lost this winter unless small businesses are given a hand of support, according to a representative group.

The Irish Small and Medium Enterprise Association is calling for a windfall tax to be imposed on 'war profiteering' energy companies.

It says the energy crisis has hit 'emergency' levels, yet there's been no substantial action despite warnings dating back to 2017.

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As reported by the Irish Examiner Finance Minister Paschal Donohoe must impose windfall taxes on energy firms' β€œwar-time profits”, business leaders have warned.

Neil McDonnell, chief executive of Isme, admitted it is unusual for a business group to seek corporate tax hikes.

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But the windfall taxes are required because small firms are facing an β€œemergency”, and will require significant amounts from the Government beyond its budget next month.

"We are looking at the oil, gas, and electricity companies generating huge profits simply because, you could argue, of virtual war-profiteering.

"It is not the usual thing we would advocate, but it is fair that the Government should capture some of the profits to mitigate what it is paying out to consumers and small businesses."

Mr. McDonnell also outlined the worst affected industries in their group: "Obviously, grocery, retail - anything that deals with fresh, chilled or frozen.

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"We also see it in manufacturing, we see it in food processing - the poultry industry, for example, is extremely dependent on heat and will become far more so as we go into the winter.

"Smelting, anything to do with metals, the pharma industry and ICT are also very energy intensive."

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