AIR 9 · CSE 2023 · GS3 · 56 pages

Nausheen: GS3 answer copy

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

The questions

The answers

Question 1 · 10 marks · 150 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 can be understood as gains from any unexpected sudden rise in price of a commodity. e.g. Property prices (real estate).

Body · points

Windfall tax effectively redistributing wealth

↳ ① To ensure profits from inflation distributed across customers. ↳ ② Additional tax revenue to government for welfare measures. e.g. Recent imposition of windfall tax on oil prices. ↳ ③ Protection against price rise of a commodity till changing tax rates are undertaken.

Promoting greater economic equality ↳ ① Funds for infrastructure development having multiplier effects in economy.

↳ ② Promoting inclusive development. ↳ ③ Minimising income inequalities, e.g. According to Oxfam report, 1% of population in India own > 40% wealth.

Way forward

Close · a way forward

↳ (1) Rationalised tax structure to prevent tax terrorism.

↳ (2) Easing compliance structure under taxation regime.

↳ (3) Increasing commodities under windfall tax regime.

An effective windfall tax regime forms a key to inclusive growth in India.