A Windfall Tax is an extra tax that a government charges a one-time surtax levied on a company or industry when economic conditions result in large and unexpected profits, especially if they have been helped by economic conditions, most often commodity businesses. The Windfall Tax was introduced by the Labour government of Tony Blair in 1997. (e.g., Inheritance taxes levied on lottery winners)
Related Definitions in the Project: The Commercial Definitions
Example Articles of the Windfall Tax:
Russia To Hit Gazprom With $20 Billion Windfall Tax (Source: Oil Price on 5 July 2022): By Michael Kern - Russia’s lower house of parliament approved on Tuesday amendments in the country’s tax code that would slap a windfall tax on Gazprom of the equivalent of $20 billion between September and November, which will boost Russia’s tax revenue income. The amendment still needs to be approved by the upper house of the Russian Parliament and President Vladimir Putin before becoming law. Under the plans, gas giant Gazprom will pay $6.5 billion (416 billion Russian rubles) per month for three months, on top of its other taxes. For September to November, this means that Gazprom will have to pay an additional $20 billion (1.25 trillion rubles) for those three months. Gazprom and Russia are seeing a windfall of revenues from gas sales as the Russian invasion of Ukraine sent energy prices soaring. Gazprom’s recent reduction of gas supply to Europe has also pushed up European prices higher amid concerns that the EU will face a winter of recession and rationing if it doesn’t have its gas storage at least 80% full by October. ...
Biden Administration Considers A Windfall Tax On Oil And Gas Profits (Source: Oil Price on 4 June 2022): By ZeroHedge - The Biden administration is considering a proposal to tax oil and gas windfall profits to provide a gas subsidy for American consumers struggling with high energy prices, said Bharat Ramamurti, deputy director of the National Economic Council at a panel sponsored by the Roosevelt Institute think tank on June 2. The news follows a similar move in the U.K. by Chancellor Rishi Sunak on May 26, to impose a 25 percent windfall tax on North Sea energy producers to provide a 15 billion pound ($18.9 billion) energy fund subsidy for Britons paying for soaring fuel costs. The White House has been examining proposals from Congress that would hike taxes on energy producers in order to provide a subsidy or tax rebate to households. ...
