Dublin, Sept. 18, 2026 (Lusa) - Portugal's government suggested on Friday that the European Commission use the national methodology as the basis for a possible European solution to taxing oil companies' windfall profits, a proposal Brussels has yet to endorse.
«There will be an initial discussion, later today, where the six countries, including Portugal, that signed the letter will put forward this position, seeking to convince the Commission of their arguments and that the Commission should move forward with a joint proposal,» said the Finance Minister, Joaquim Miranda Sarmento.
Speaking to the Lusa news agency as he arrived at the informal meeting of eurozone finance ministers in Dublin, organised by the rotating presidency of the Council of the European Union, the Portuguese minister responsible for finance considered that an EU-wide measure, rather than a national one, would provide «safeguards in the sense that it would now apply across the whole of Europe and would therefore be more harmonised across the board».
«Portugal has, after all, already taken steps forward, and parliament is currently discussing a proposal; therefore, even the Portuguese methodology itself could serve as a starting point for defining a European methodology,» Joaquim Miranda Sarmento suggested.
He added: «Our rules are simple: 20% of the average over the last two years is taxed, and so the Commission can look at and use this methodology as a working basis.» Portugal, Germany, Austria, Spain, Italy and Poland have, through two letters addressed to the European institutions, advocated a common approach to taxing the windfall profits of oil companies, arguing that the war in the Middle East is putting pressure on energy prices whilst oil companies are recording high levels of profitability and refining margins that exceed the rise in the price of crude oil.
The six countries are calling for the measure to ensure that the impact of the energy crisis does not fall primarily on consumers and public finances, and want the EU to take into account the lessons learnt from the solidarity levy introduced in 2022, seeking this time to target more specifically the profits earned abroad by multinational oil companies.
Although the issue was not on the initial agenda, European sources told Lusa that pressure from Germany and Spain will bring it up for debate at this informal meeting.
Brussels has, however, consistently taken the view that taxing windfall profits falls within the competence of the Member States, provided national measures comply with EU law.
«So far, the Commission has been more sceptical, but we will see how the discussion concludes and what decision the Commission will then take,» Joaquim Miranda Sarmento told Lusa.
Portugal has approved a proposal to introduce a Temporary Solidarity Levy on the Oil Sector, applicable to profits in 2026.
The proposal provides for a 33% tax on the portion of relevant profits that exceeds by more than 20% the average profits recorded in 2024 and 2025 by companies in the crude oil and refining sectors.
When asked whether there is already an estimate of the revenue the levy might generate and which companies would specifically be affected, the minister concluded: «When the matter is debated in parliament, we will endeavour to clarify as fully as possible the objectives, scope and expected outcomes of this measure.» ANE/ADB // ADB.
Lusa
