Hyperprofit / SYRIZA resubmits the question to Mitsotakis who has been on the run for 3 weeks

Her serious matter taxation of excess profits to energy sector from government reinstates SYRIZA – PS.

The president of the Parliamentary Group of the official opposition party, Sokratis Famellos, proceeded to resubmit the current question to the prime minister from 03-15-2024, regarding the taxation of excess profits to energy sectoras here and three weeks has not come to Parliament in order to answer this important question at a time when consumers as well as production are being tested like never before accuracy and oligopolies put in their coffers excess profits.

As stated in the topical question “Ta two refineriesdespite billions in excess profits, undertaxed in 2022 and the government refuses to tax them for 2023despite the possibility provided by its relevant regulation EU. While in power supply the implementation of the relevant legislation as well is delayed for more than a year.”

“It is now clear that the accuracy, and especially the energy waste, it is the government’s choice Mitsotakis, provided it provides immunity to the inconceivable surplus profits and dividends of a few groups and companies, at the expense of households and the entire Greek economy, despite the forecasts of European and national institutional framework. And while he has made this choice, he hypocritically invokes narrowness fiscal margins for all the rest of society and economy”, is noted, among other things, in the topical question of SYRIZA-PS to the prime minister.

The current question to the Prime Minister in detail

CURRENT QUESTION

To the Prime Minister

Subject: Why does the Government turn its back on excess profits in fuel and electricity and does not tax them as provided for by European and national rules?

Greece’s pan-European firsts in accuracy in fuel and electricity are linked to the provocative, anti-developmental and anti-social choice of the government that turns its back on profiteering, not implementing the European and national framework that provides for extraordinary taxation of surplus profits. In particular, for excess profits in fuel and electricity, the government options are as follows:

A. Fuel refining

2022, despite the war in Ukraine and the energy crisis, was a record-breaking year for listed companies with a 303.6% jump in profits and a 15-year record for dividend payouts, with 80% of dividends going to just 7 companies. At the top of the profitability list for 2022 were the country’s two major energy groups, Motor Oil and HELLENiQ Energy (formerly ELPE). A similar picture of significant, albeit relatively reduced, profitability is observed for 2023 as well, as can be seen from the already published data of the two companies and as illustrated by the refining margin, which for HELLENiQ Energy amounts to $17.40/barrel, twice the 2018-21 four-year average ($8.75/bbl).

In application of European Regulation 2022/1854, the government compulsorily proceeded with the institution of extraordinary taxation of surplus profits from the activity of refining (Law 5007/2022, article 114). However, he made sure that this taxation through the extraordinary solidarity levy was as low as possible, (a) by choosing the minimum rate allowed by the European Regulation (33%), (b) by enabling the extraordinary levy to be counted as a tax expense for the next year, and (c) limiting its application only to the year 2022, while the European Regulation allows for application for 2023 as well. The result of this was to ensure only 630 million euros for the tax year 2022, while if the commitment had been applied of the Prime Minister in Parliament on 23.03.2022 for taxation of surplus profits at a rate of 90%, an extraordinary contribution of 2.36 billion euros would have been confirmed. At the same time, the introduction of the levy as an expense for 2023 reduces the contractual tax obligations of the two refineries for 2023.

However, the government’s choice not to proceed with the taxation of surplus profits for 2023 remains particularly scandalous, when, based on the financial data of the two groups published so far, surplus profits are again generated from the refining activity. In fact, as the Deputy Minister of Finance was forced to admit in Parliament (28.02.2024), the government does not intend to

tax refiners’ surplus profits for 2023 with the excuse that “in 2022 it was the increased price of gasoline that created this problem.” That is, he revealed that the government chose, despite the possibility of Regulation 2022/1854, not to tax the super profits for 2023 and let them accumulate in the coffers and dividends of the two refineries, burdening the economic-production functions and consumers.

B. Electricity market

A similar picture is presented by the taxation of excess profits from the supply of (retail) electricity, which arose in the period August 2022-December 2023 when, with the alleged abolition of the readjustment clause, suppliers were asked to calculate ex ante the supply prices each month, setting high provisions that were not verified but were properly billed to consumers and collected. Only for the months of September and October 2022, it is estimated that there were excess profits of the order of 1 billion euros, which were also subsidized by the state budget!

Following the opposition pressure of SYRIZA-PS, the then Minister of Environment and Energy was obliged to legislate the taxation of surplus profits in November 2022 (Law 4994/2022, article 40). Then there were successive extensions of the deadlines, the Ministerial Decision on the calculation of surplus profits was signed with a year (!) delay, but, as is known to date, the state has not collected a single euro from the surplus electricity profits since August 2022, although seventeen months have passed since the relevant legislation was enacted.

So while consumers are experiencing unprecedented accuracy, excess profits remain a challenge for energy company coffers and shareholders.

Following the above, the Prime Minister is asked:

1. Will the government tax refineries’ excess profits for the year 2023? If not, on what grounds does the government choose not to return said surplus profits to Greek society and economy, which continue to be burdened with exorbitant fuel costs?

2. Why has the government delayed for over a year the taxation of excess profits in electricity supply? How does it plan to return these excess profits to those burdened in 2022 and 2023?

The Questioner

Socrates Famous

President of Parliamentary Group SYRIZA PS