Question 1 · 10 marks · 118 words written
Opening · a date or context
In 2022, Government of India imposed windfall tax on crude oil production and processing companies in wake of windfall profits.
The windfall tax is a tax that is levied upon the companies that get substantial increase in their profits not due to their enterprising decisions, but due to changing market situations.
Body · points
- Windfall tax : a tool for redistributing wealth
→ 1) As all taxes are part of government's mechanism to redistribute the resources in economy, so is the windfall tax. → 2) Windfall tax redistributes the excessive profit attained by companies to the government, that in turn uses it for social welfare spending.
→ 3) It redistributes the economic wealth and promotes the economic equity in society.
Close · no separate close
None written.