An oil refinery in Carson, California, April 2, 2026. JUSTIN SULLIVAN / AFP
Should governments tax oil giants whose profits have surged due to soaring oil prices? More than a month after the start of the US-Israeli war in Iran, the debate has intensified across Europe as governments begin rolling out measures to help households and businesses weather the inflation shock and seek ways to fund these initiatives. On Friday, April 3, five European countries (Germany, Austria, Spain, Italy, and Portugal) called on Brussels to impose such a levy on energy groups, in a letter addressed to the European commissioner for climate, Wopke Hoekstra. "[This tax] would also send a clear message that those who profit from the consequences of the war must do their part to ease the burden on the general public," the signatory finance ministers emphasized.
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However, a portion of these windfall profits end up in tax havens, where they are subject to very low taxation, according to a new study, "The Global Allocation of Extractive Windfalls," published Tuesday, April 7, by the International Tax Observatory, the research laboratory led by economist Gabriel Zucman at the Paris School of Economics.
