Windfall Profits Tax

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Windfall Profits Tax

A tax on profits seen as excessive. For example, a windfall profits tax may be imposed on oil companies when their profits rise above a certain amount. The idea behind a windfall profits tax is to encourage the taxed persons or companies to lower their prices, which is thought to be good for consumers. However, it may have the effect of reducing investment because the aftertax profit may not be worth the effort. See also: Windfall shares, Windfall tax.
References in periodicals archive ?
China needs to reduce the windfall profit tax to accommodate struggling producers.
The book consists of four edited and augmented Congressional Research Service (CRS) reports from 2006 to 2008, on the crude oil windfall profit tax of the 1980s and implications for current energy policy; oil industry financial performance and the windfall profits tax; current status and analysis of gas tax subsidies; and the use of profit by the five major oil companies.
And impose a windfall profit tax on oil companies in order to provide a $1,000 emergency rebate to American middle class families.
Shale developments are highly capital intensive and a windfall profit tax assessment being discussed in Congress would directly and immediately reduce investment in U.
His abandonment of the windfall profit tax on the greedy energy companies as a "gimmick" (trust me, Gordon, you really, really NEED a gimmick) was rendered ridiculous by the fact it was him who'd led us on in the first place.
The "oil industry's stellar results renewed talk among some politicians for a windfall profit tax that would push companies to invest even more in new production and refining capacity.
First, some individual windfalls are large (for example, during its heyday the Windfall Profit Tax on Oil, discussed in Subsection IV.
8-million gain, 14 cents a share, from settlement of a windfall profit tax dispute.
However, the rule that requires state-owned Sonatrach to hold a 51% stake in all upstream projects will be retained, as will the non-deductible windfall profit tax (WPT) imposed on international investors.
In 1997, a windfall profit tax was assessed against Southern Company's South Western Electricity subsidiary in the United Kingdom, causing a one-time charge that reduced 1997 earnings by $111 million or about 16 cents per share.
4 million charge for CIN's share of the windfall profit tax imposed on Midlands Electricity PLC.
Regulatory & Reserve Adjustments (4,658) 21,263 Windfall Profit Tax - London Electric (234,080) Tax Rate change - London Electric 64,670 Sale of ISES 941 Total (174,068) 22,204 Consolidated Net Income $80,942 $279,880 (71.