Current Context : Government abolishes windfall tax on crude oil, ATF, petrol, and diesel exports.

About Windfall Tax

• A windfall tax is a tax imposed by governments on certain industries that experience significantly above-average profits due to favorable economic conditions.
• g., India imposed windfall tax on domestic crude oil production in July 2022, following a sharp rise in global crude oil prices.
• These taxes are designed to capture a portion of these unexpected gains to fund public projects, reduce deficits, or redistribute wealth.