Austria will introduce a temporary windfall tax on energy firms, according to the country’s Finance Ministry on Friday.
 The windfall tax, which is levied on unexpectedly large profits, will be up to 40% for oil and natural gas companies.

It will apply to oil and natural gas companies' profits in 2022 and 2023, which are 20% above the average of years between 2018 and 2021.

The amount of tax can be lowered to 33% if the companies would make investments in green energy. The move is part of a European Union-wide agreement that aims to redistribute some of the excess profits of energy companies.

Energy firms' earnings have skyrocketed this year as Russia's war on Ukraine has pushed energy prices higher.

Austrian Vice Chancellor Werner Kogler called the government's latest move "a war dividend." Addressing a press conference, Kogler said: "The important thing is that we are taking a step towards greater fairness."