Exxon Mobil Sues European Union In Efforts To Scrap New Windfall Tax On Oil Firms

Exxon Mobil Corp XOM has reportedly sued the European Union to remove the bloc's new windfall tax on oil groups.
Oil companies have reported record quarterly profits benefiting from high energy prices due to the Russia-Ukraine conflict, leading to further calls to tax the sector.
Exxon spokesperson Casey Norton told the Financial Times the windfall profits tax is "counter-productive," discourages investments, and undermines investor confidence.
The Financial Times first reported the lawsuit.
Related: Exxon Boosts Quarterly Dividend After Four-Fold Increase In Q3 Earnings.
"Whether we invest here primarily depends on how attractive and globally competitive Europe will be," Norton said.
Exxon invested $3 billion over the past ten years in European refinery projects, helping it deliver more energy products when Europe struggles to reduce its imports from Russia, Norton added.
The action threatens the viability of a levy the European Commission said would raise €25 billion "to help bring down energy bills."
The new tax will take effect from December 31 and apply a levy of at least 33% on any taxable profits in 2022-23 that is 20% or more above average profits between 2018 and 2021.
Price Action: XOM shares are down 0.74% at $107.58 during the premarket session on the last check Thursday.