Daily News Analysis

Windfall tax – Petroleum

stylish_lining

India cut its windfall tax on petroleum crude to 1,700 rupees ($20.53) a tonne from 2,300 rupees a tonne, according to a recent government notification.

Windfall Tax

It is a tax levied by governments against certain industries when economic conditions allow those industries to experience significantly above-average profits.

  • The term “windfall” refers to an unexpected rise in profits, and the tax on windfall gains is known as the windfall tax. 

When is it imposed?

    • When the government notices a sudden increase in an industry's revenue, they impose this tax.
    • However, these revenues cannot be linked to anything the company actively pursues, such as its business strategy or expansion.
    • Rather, it is related to a one-off external event for which the business is not responsible. 
    • Consequently, a Windfall Tax is imposed on an industry's profits when it experiences a sharp increase in revenue due to unrelated external events.
    • A recent example is the sudden rise in the profits of the oil and gas industries due to the Russia-Ukraine conflict. 
    • The unexpected windfalls are taxed by the government over and above the normal tax rates.

The most common industries that fall target to windfall gains tax include oil, gas, and mining.

Purpose:

    • Redistribution of unexpected gains when high prices benefit producers at the expense of consumers;
    • To fund social welfare schemes;
    • As a supplementary revenue stream for the government;
    • As a way for the Government to narrow the country’s widening trade deficit.

Inclusivity of People with Disabilities in STEM Education

Current Situation: India has nearly 63 million people with disabilities (NFHS-5), but their representation in STEM fields is very low. Despite strong laws like the Right to Educat
Share It

National Handloom Day and the Swadeshi Movement

National Handloom Day Date: Celebrated every year on 7th August in India. Significance: Marks the launch of the Swadeshi Movement on 7 August 1905, which promoted indigenous indus
Share It

World Trade Organization (WTO)

Why in the News? India recently called for significant reforms at the World Trade Organization (WTO) during a high-level mini-ministerial meeting in Paris ahead of the 14th Ministerial Conferen
Share It

Israel-US-Iran Conflict

Recently, tensions in the Middle East escalated dramatically as Israel launched “Operation Rising Lion”, a significant military strike aimed at Iranian nuclear infrastructure and balli
Share It

Philippines President’s Visit to India (2025)

In 2025, during the Philippines President's state visit to India, both nations elevated their bilateral relationship to a Strategic Partnership. The visit reaffirmed the 1952 Treaty of Friends
Share It

India's Participation in the 51st G7 Summit

India participated as an Outreach Country in the 51st G7 Summit held in Kananaskis, Canada in 2025. Key Outcomes of the 51st G7 Summit (2025): Kananaskis Wildfire Charter:
Share It

Quit India Movement (QIM)

India commemorates 8th August every year as Quit India Movement Day (also known as August Kranti Diwas) to honor the historic movement that demanded the immediate end of British colonial rule in I
Share It

National Waterway-57 (Kopili River)

The National Waterway-57 (NW 57), running through the Kopili River in Assam, has been officially operationalised, marking a significant step in India’s development of Inland Water Transport
Share It

Union Cabinet Approves National Sports Policy (NSP) 2025

The Union Cabinet, chaired by Prime Minister Narendra Modi, has approved the National Sports Policy (NSP) 2025, aiming to address long-standing challenges and transform India into a global sportin
Share It

CIMMYT’s Financial Crisis

The International Maize and Wheat Improvement Center (CIMMYT), a pivotal institution in the development of agricultural research for maize, wheat, and related crops, is facing significant financia
Share It

Newsletter Subscription


ACQ IAS
ACQ IAS