AIR 231 · CSE 2022 · GS3 · 50 pages

Manan Bhat: GS3 answer copy

20 answers by Manan Bhat, as written in the test. Each question opens a page with how other toppers answered it.

The questions

The answers

Question 1 · 10 marks · 166 words written

What do you understand by Windfall tax? Do you think that windfall taxes can effectively redistribute wealth and promote greater economic equality?

Opening · a definition

Windfall tax is imposed on a company where it makes huge profit not because of expansion of company's output but because of prevailing international scenario which led company to get much gain.

Ex → Petroleum companies were charged windfall tax because of international high price of petro-products due to Russian-Ukraine war.

Body · points

Windfall tax :- Promoter of equality

  1. Progressive taxation :- as it is charged on rich and hence revenue can be used to serve needy & poor.

  2. Socialism:- As per Oxfam:- Top 1% Indians own 22% resoures, hence such taxation would fill the wide gap by taxing rich.

However, they are not sole solution

  1. Government by charging windfall taxes is not using them on social security schemes but for capital expenditure.

  2. Poor is not given any tax concession on buying the same thing Leading to burden of windfall tax on poor due to more cost price.

Close · a summary

Windfall tax, during Ukraine-Russia war was a necessary evil to ensure India's socialistic principles of development.