Windfall tax : UPSC Daily Important Topic | 6 July 2022

Windfall tax

✓A windfall tax is a higher tax rate on sudden big profits levied on a particular company or industry.

✓Domestic producers sell crude oil to domestic refineries at international parity prices, thus making windfall gains.

✓ONGC reported bumper profits in the March quarter (when international prices soared to a near 14-year high of $139 per barrel).