A windfall tax is a special tax that governments impose on industries or entities earning unexpected, above-average profits due to external factors like market surges or geopolitical events.
- It is commonly levied on industries such as oil, gas, and mining.
- Governments use it to capture excess profits for public revenue, fund welfare, or stabilize economies.
- India first implemented windfall profit taxes on 1st July 2022.
Impact
Source: The Hindu