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 ?
I cannot see how a windfall tax will help the average family over the coming winter.
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.
Unions and 100 Labour MPs are campaigning for a windfall tax after energy firms recorded profits of around pounds 3 billion.
Recent sharp increases in fuel bills, together with large profits announced by energy firms, have stirred public outcry in Britain, triggering calls for a windfall tax on such profits.
Why not a one-off windfall tax on those enormous bank profits to secure funding for pensions justice?
Mr Brown plans to implement the windfall tax in a "welfare to work" budget weeks after Labour comes to power.
His previous loyalty to David Cameron and the Conservatives makes his call for a windfall tax on the excess profits of rip-off energy firms all the more damaging to the party he led.
amp;nbsp;Namibia is looking to introduce a minerals windfall tax to enable the state to benefit more from the country's vast mineral resources, Mines and Energy minister Isak Katali said on Tuesday.
In particular, the imposition of a new windfall tax on North Sea oil and gas producers to fund a measly 1p cut to petrol duty was ill thought out and potentially hugely damaging.
ALISTA T IR Darling has warned that the betteroff would have to shoulder more of the cost of economic recovery amid reports he was ready to impose a windfall tax on bankers' bonuses.
ALISTAIR Darling warned yesterday that the better-off would have to shoulder more of the cost of economic recovery amid reports he was ready to impose a windfall tax on bankers' bonuses.
Introduced in 2006, the windfall tax covers all oil produced in China and sold for more than $40 a barrel.