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 ?
Finance Minister Alexander Chikwanda has in the past called advocates of the windfall tax as lunatics.
I cannot see how a windfall tax will help the average family over the coming winter.
Windfall tax calculation = 23% x [(365 x (P / D) x 9) - FV], where the windfall tax rate is 23%, P equals the amount of the total profits for the company's initial period, D equals the number of days in the company's initial period, and FV equals the notation value (i.
Should the winning bidder sell the unit at, say, NT$300 million within one year, he or she will have to pay a windfall tax amounting to NT$90 million at 30% tax rate.
Shadow chancellor George Osborne, interviewed earlier, said he would not rule out a windfall tax on bankers' bonuses, which are expected to hit pounds 6bn this year.
Over and above the 25% windfall tax, introduced in April 2008, the finance ministry also slapped on a 15% variable profit tax on income above 8% of sales, raised mineral royalties from 0.
Unions reacted by insisting there remained a compelling case for a windfall tax on energy companies.
A compelling case still remains for a windfall tax on the greedy energy companies.
The Prime Minister is to unveil proposals to help around ten million households with loft insulation, a new boiler and double glazing, but not to impose a windfall tax on fuel companies, according to reports last night.
THE Government is finally expected to unveil a fuel poverty package tomorrow but without a windfall tax on energy companies' profits.
The big political question is whether oil companies, whose profits have soared, should face a one-off windfall tax on the profits.
LONDON: British finance minister Alistair Darling is looking at imposing a windfall tax on energy companies, although the government is divided on the issue, a newspaper reported yesterday.