The OECD proposes raising taxes on electricity companies

The Secretary General of the Organization for Economic Co-operation and Development (OECD), Mathias Cormanconsiders that governments have room to implement in the short term tax increases for energy companies and redirect part of the income generated to alleviate the impact of high prices of electricity to consumers.

In this way, the general secretary of the ‘think tank’ of the advanced economies has advised the governments to propose short-term measures aimed at protect consumers already cushion the effect of the energy crisisaggravated by the Russian invasion of Ukraine, as the sharp increase in electricity costs will affect households and energy-intensive industries.

“Current market conditions may lead to increased profits for utilities and as a first step Taxes on these companies could be increased and what you get channeled to consumers to reduce electricity bills“, raised the Australian during his participation in the informative breakfast Forum Europe.

The Secretary General of the OECD, Mathias Cormann, speaks at an informative breakfast at Forum Europe

“In the short term, given the benefit that energy companies are obtainingNow there is an ability to increase the level of taxes paid by these companies and redirect part of the money generated to measures to cushion the impact of high prices on consumers,” he stressed.

However, he has warned that any fiscal response must be “very, very targeted”because a generalized increase in taxes cannot take place, “but very much directed to certain specific sectors”, in addition to taking into account the turn assumed by the central banks in their monetary policies in response to inflationary pressures.

Likewise, with a view to the medium and long term, Cormann has pointed out that there are challenges associated with the link between the price of gas and electricity, adding that on this issue he will maintain conversations with the Government of Spain to know your medium and long-term plans.

In any case, the Secretary General of the OECD has expressed the need for the whole of Europe to carry out a rethinking of the energy supply and the energy market with a view to reduce dependence on Russia as a provider.