Windfall Tax

A windfall tax is a one-off surtax imposed by governments on companies that make outsize or excess profits. Calls for a windfall tax have been made with regard to companies that made huge profits during the Covid-19 pandemic, especially those who also benefited from public support programmes. Similar calls tend to be voiced regarding commodity producers or utilities during times of price spikes. Windfall taxes are usually levied to ensure companies do not benefit excessively at a time of hardship for the majority.