Punitive Tax

Punitive Tax

1. A tax imposed to discourage a behavior. For example, retirement plans usually have excise taxes placed upon them if one makes a withdrawal prior to a certain age.

2. An extraordinarily high tax. For example, a government theoretically could impose a tax of 99% on all income over $20,000. There is no consensus as to what qualifies as a punitive tax.
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The association wants the county government to ask Somaliland to begin talks on doing away with punitive tax imposed on Kenyan miraa.
Finance Secretary Mark Drakeford has suggested a punitive tax on some land which is not used for building.
We are also discouraged by the administrations continued push to target the natural gas industry with an additional punitive tax.
Nokian Tyres Oyj (HEL:NRE1V) reported on Tuesday the receipt of tax reassessment decision from the Tax Administration, under which the company is obliged to pay EUR59m additional taxes with punitive tax increases and interests concerning tax year 2011.
By the way, the Department of Health has been advocating for a punitive tax on sweetened drinks, similar to the 'sin tax' on alcohol and tobacco.
Another negative effect of the government's punitive tax regime is over 50 per cent drop in foreign direct investment this year compared to the previous year.
The Greek government is expected to exempt imports from European Union countries from a 26 per cent punitive tax on fictitious imports of goods and services, officials from two business groups said.
He reviewed the best European practises and decided that Sweden had an enviable hospital building programme, but unlike the socialist Swedish government, we did not have a punitive tax system to pay for this.
The punitive tax has also pushed up rent arrears by PS24million because tenants cannot afford their lodgings.
He said without tangible evidence, government had no choice but to simply impose the punitive tax.
Removing Scottish APD would see passengers rushing across the border to avoid paying the punitive tax at Newcastle, Manchester or any other English airport,' said Willie Walsh, the chief executive of IAG.
Also in Poland, "A punitive tax regime and an insistence that foreign companies work with local partners did much to dampen enthusiasm, although the government has since made its regulatory regime more attractive to overseas investors," reports Anderson.