Q. Windfall tax refers to:
Quarterly-SFG-Jan-to-March
Red Book

[A] It is a recurring tax imposed on all businesses to regulate their annual profits.

[B] It is a penalty imposed on companies for failing to meet environmental standards.

[C] It is a tax levied on long-term financial investments to curb market speculation.

[D] It is a tax imposed on unexpected or excessive profits earned by companies due to external factors beyond their control.

Answer: D
Notes:

Explanation – Windfall tax refers to a one-time tax imposed on companies that earn unexpectedly high profits due to external factors, such as geopolitical events or sudden price surges in commodities.

Source: The Hindu


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