Greece to tap oil refineries levy to fund food allowance for households

Greece expects to raise around 650 million euros ($690.82 million) from a windfall tax on its two oil refineries this fiscal year and use the proceeds to help households with their monthly food expenses, its finance minister said on Monday.

During a parliamentary vote for the 2023 budget on Saturday, Prime Minister Kyriakos Mitsotakis said his conservative government, whose term expires next year, will subsidise 10% of monthly food costs for about 85% of Greek households from February until July next year.

Countries around the European Union have been announcing windfall taxes on oil and gas firms as part of emergency measures to help consumers deal with a twin inflation and energy crisis

“Without any fiscal cost, we will tax the refineries for 2022… to collect, we estimate, 650 million euros,” Finance Minister Christos Staikouras told state television ERT on Monday.

The amount will be finalized once Greece’s two oil refineries, Helleniq Energy, and Motor Oil, publish their financial result for the fourth quarter, Staikouras said. [Reuters]