- SFG FRC 2027 | Program starts from 19th Dec. 2026 | Admissions open for Entrance Test Click Here to know more →
- Prelims Test Series (PTS) for Prelims 2027 starts 11th Oct. 2026 Click Here to know more →
- [Pre-order] Ethics Redbook 3rd Edition: Delivery starts from 10th October onwards Click Here to Read More →
- 21 Sept. | GS Advance Program (GSAP) for UPSC 2027 Mains starts from 11th Oct. Click Here to Read More →
News: The Centre has decided to scrap the windfall tax as the oil prices have subdued.
1. A windfall tax is a tax imposed on companies or industries that have experienced unexpectedly high profits due to factors beyond their control or normal business operations.
2. It is often levied on industries such as oil, gas and mining.
3. The purpose of windfall tax is to ensure fairness and equity by taxing companies that disproportionately benefit from unexpected events.
4. India implemented a windfall tax in 2022 to curb excess profits made by the oil and gas companies during the Russia-Ukraine war.
5. The windfall tax is levied in the form of Special Additional Excise Duty (SAED) and is reviewed every fortnight based on average oil prices in two weeks.
