Black Friday is Now! Don’t miss out on up to 60% OFF InvestingProCLAIM SALE

German utilities could receive 2.2 billion euros in tax refunds - court

Published 14/04/2014, 17:40

By Christoph Steitz and Matthias Inverardi

FRANKFURT/DUESSELDORF, Germany (Reuters) - A Hamburg court has reached a preliminary decision that could lead to German utilities being refunded more than 2.2 billion euros (1.82 billion pounds) in nuclear fuel taxes by the government.

The Hamburg Financial Court said on Monday it had granted a request by nuclear power plant operators E.ON and RWE , Germany's two largest utilities, and ordered the central customs offices to pay back the sum.

The decision is not legally binding, a spokesman for the court said, pointing to its decision in November to refer a complaint against the tax to the European Court of Justice, the EU's highest court.

A spokesman for Germany's finance ministry said the ministry would take a look at the reasons the court gives for its decision and file a complaint with the Federal Finance Court if warranted. Legally, it has a month to file the complaint.

"Today's decision confirms our view that the nuclear fuel tax is against the law and not compatible with European regulation," a spokeswoman for RWE said.

E.ON said the decision had no initial impact on its results as it was not able to book the refunds - about 1.7 billion euros - as long as the final decision was pending.

The nuclear tax levy, due to expire 2016, requires firms to pay 145 euros per gram of nuclear fuel each time they exchange a fuel rod, usually about twice a year. RWE and E.ON say they have paid 3 billion euros since the tax was introduced in 2011.

The utilities argue the finance ministry is not formally entitled to collect the tax as its remit does not stretch to the sector, only to taxes on personal consumption.

(Additional reporting by Matthias Sobolewski; Editing by Maria Sheahan and David Evans)

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.