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Market Chatter: France Considers Imposing Windfall Tax Amid Energy Price Surge

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The French government may impose a windfall tax on companies that benefited from the surge in energy prices brought about by the US-Iran war, Reuters reported Friday, citing Finance Minister Roland Lescure.

The minister reportedly told a local radio station that companies that have made "exceptional" amounts may have to pay additional taxes, and that a debate on the matter will take place in the fall.

If implemented, windfall taxes may primarily affect energy firms, such as TotalEnergies (TTE).

TotalEnergies CEO, Patrick Pouyanne, warned last month that any tax surcharge by the government would lead to the company ending fuel price caps it has in place at retail outlets.

The French oil supermajor has faced criticism after it reported a 51% year-over-year jump in its Q1 net income, local news agency RFI reported last week, strengthening the case for additional taxes advocated by several politicians.

A number of environmental organizations and social justice coalitions have also urged the government to impose a permanent windfall tax on fossil fuel profits, according to environmental campaigner '350'. It cited TotalEnergies' "indecent" Q1 profits that have cost consumers billions of euros.

TotalEnergies' Pouyanne will reportedly face the National Assembly finance committee on June 17 to answer questions.

has reached out to the energy company to seek comment.

(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)

Price: $90.96, Change: $-1.45, Percent Change: -1.57%

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