Lancashire County Council is planning to increase fines for taking children out of school during term time to £1,000 per child per parent.
Parents at Balladen Community Primary School in Rossendale were sent a letter last week by the head teacher, warning of the move, according to the Sunday Times.
Under the scheme, a family with two children at the same school could receive a £4,000 fine. Currently, parents face a £120 fixed penalty notice per child.
The Conservative-controlled council has issued more term-time holiday penalty notices than almost any other council, the Sunday Times reports.
Last year, Lancashire issued 7,575 fines, up from 6,876 the previous year.
The council said no decision had yet been taken, but Councillor Susie Charles said: "We are considering any possible action that could be taken in the future to reduce unauthorised absences.
"This is at an early stage."
Campaigner Jon Platt, who fought a long battle against a fine imposed by the Isle of Wight council, which he eventually lost, said: "This is the start of the end of term-time holidays.
"Lancashire are trialling this but make no mistake, this is headed your way soon.
"Once this is rolled out there will be no term-time holiday where the saving mitigates the fine. Two parents with four kids could face £8,000 in fines.
"Parents taking their children on term-time holidays are now seen as fair game for fines so punitive that they dwarf the fines drunk drivers and shoplifters face.
"If you think that’s disgusting, make sure you sign our petition."
