Vorarlberg groups split over windfall tax proposal

Austria’s finance minister wants to pursue a windfall tax on international oil companies whose profits have risen because of the war, but the proposal has divided opinion in Vorarlberg, ORF reported. The ÖAMTC motoring club supports the idea, while business representatives remain sceptical.

Diesel and petrol prices have risen significantly again, increasing pressure on drivers. Finance Minister Markus Marterbauer of the Social Democratic Party plans to discuss a new tax on the high profits of international oil companies with European counterparts.

Dominik Tschol, a club lawyer for the ÖAMTC in Vorarlberg, said the organisation welcomed the proposal. In difficult economic times, he said, people who depend on their cars every day should be supported.

A windfall tax would target the companies benefiting from high prices rather than small petrol stations, Tschol said.

Peter Aberer, head of the Vorarlberg energy traders’ association, took a more cautious view. Interventions in a functioning market economy should generally be treated critically, he said, although there was no sympathy for the oil companies.

The key issue, Aberer said, was whether any tax would actually benefit drivers. Placing an additional burden on companies alone would not automatically lead to lower prices at petrol stations.

The ÖAMTC is also calling for national measures, including lower taxes and charges on fuel. It wants carbon pricing to be reduced or suspended temporarily and is demanding an extension of the fuel price brake.

Business representatives are also calling for a reduction in the carbon tax. Alternatively, the mineral oil tax could be cut. The current relief of 1.9 cents per litre has had only a limited effect, they said.

A survey in Dornbirn showed widespread frustration among drivers. Respondents described current prices as far too high, with diesel costing more than two euros per litre drawing particular criticism. Many said they had noticed little benefit from the existing fuel price brake at petrol stations.

Many respondents said they would welcome a windfall tax on large oil companies. They criticised the rapid pass-through of price increases on international markets to consumers, while falling prices were reflected much more slowly.