Windfall Tax The financial gain that results from an event for which a company is not at fault/steps is known as windfall profits. Gove...
Windfall Tax
The financial gain that results from an event for which a company is not at fault/steps is known as windfall profits.
Governments typically impose a one-time windfall tax on such profits in addition to the regular tax rates.
Many governments are considering imposing such a tax because energy companies are profiting not from any improvements in their processes but rather from the geopolitical situation.
This will strengthen government finances and provide funding for initiatives to shield vulnerable groups from rising prices.
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The Centre has raised the windfall profit tax on domestic crude oil and on export of diesel, while bringing back the levy on overseas shipments of ATF.
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