-- Portugal will move forward with a proposal to impose a windfall tax on energy companies to mitigate the impact of surging costs for consumers and businesses following the outbreak of war in Iran, Bloomberg reported Tuesday, citing the country's finance minister.
Joaquim Miranda Sarmento said the proposed levy on energy profits would be modeled after measures implemented during the 2022 energy crisis.
"We will take the measures adopted in 2022, fine-tune and improve them, and in the near term, present a proposal to parliament," Sarmento reportedly said.
Portugal's Ministry of Finance did not immediately respond to' request for a comment.
Portugal is among a group of EU countries, including Germany and Spain, that called for a windfall levy on energy companies' profits in a letter to the European Commission last month.
Sarmento said the signatories intend to coordinate their policy responses and invite other member states to join the initiative.
"We will take the measures adopted in 2022, fine-tune and improve them and - in the near term - present a proposal to parliament," he said.
Though the Commission has signaled it will leave the final decision on such measures to individual member states, Portugal and its allies are seeking a framework that aligns national strategies across the bloc.
Global energy prices have soared to record highs as the ongoing Middle East crisis has brought shipping via the Strait of Hormuz to a near-standstill, severing critical supply lines for oil and liquefied natural gas.
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