France levies high-profits tax on oil companies

France's oil companies will pay "an exceptional tax" to help fund a heating oil premium granted by the government to low income householders.

Dec 11th, 2007

Doris Leblond
OGJ Correspondent

PARIS, Dec. 11 -- France's oil companies will pay "an exceptional tax" to help fund a heating oil premium granted by the government to low income householders. The tax will be levied on the basis of 25% of the provisions for high prices, which the companies have built up over the past years.

The companies can either pay the tax directly to the State or to the fund. They most likely will choose the second option, said Jean-Louis Schilansky, delegate general of the oil companies' trade group UFIP. He told OGJ the fund could amount to €102 million.

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