A tax refund also a tax refund that has been overpaid due to a variety of reasons including; when tax payers owe less than the sum of the total amount of the withholding taxes and estimated taxes they paid, when one starts a new job and is taxed under emergency code for some timeĀ among other reasons. A government would offer a tax rebate for purchasing a new, fuel efficient vehicles with an aim of encouraging better utilization of limited resources of fossil fuels.