Windfall Profits Tax

(redirected from windfall taxes)
Also found in: Dictionary, Encyclopedia, Wikipedia.

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 ?
Opponents of Windfall taxes argue that such taxes are not necessary and are rather punitive because if a company profits are high, its tax bill will be high too.
It remains to be seen what effect the proposed Windfall taxes will have on future investment in the mining industry which contributed 10% to the country's GDP in 2009.
ENERGY giants should pay windfall taxes to share their massive profits with the nation, the head of Britain's biggest union said yesterday.
The SFA and the Scottish national team will also be vulnerable to windfall taxes.
Downing Street under pressure to impose windfall taxes on power firms
I WONDER if all the loose talk about windfall taxes over the last few weeks put a spanner in the works of the EDF bid for British Energy.
The head of employers organisation the CBI has warned the Government not to jeopardise economic stability in its pre-election budget ( and not to hit business with windfall taxes after it.
The centrepiece of Mr Brown's Budget is the welfare-to-work plans financed by privatised utility windfall taxes.