HOUSTON: US oil major Exxon Mobil Corp is suing the European Union in a bid to force it to scrap the bloc’s new windfall tax on oil groups, arguing Brussels exceeded its legal authority by imposing the levy.

Record profits this year by oil companies benefiting from high energy prices have boosted inflation around the world and led to fresh calls to further tax the sector.

The windfall profits tax is “counter-productive,” discourages investments and undermines investor confidence, Exxon spokesperson Casey Norton said on Wednesday. Exxon will factor in the tax as it considers futu­re multibillion-euro inves­tm­ents in Europes energy supply and transition, he said.

“Whether we invest here primarily depends on how attractive and globally competitive Europe will be,” Norton said.

Published in Dawn, December 29th, 2022