Mentor’s Comments-
- https://www.thehindu.com/news/national/why-is-windfall-tax-being-imposed-on-the-energy-sector/article65857808.ece
- https://indianexpress.com/article/business/windfall-tax-on-crude-reduced-export-duty-on-diesel-halved-8186598/
- In the introduction, explain windfall tax.
- In the body, first, mention the need for a windfall tax. Next, mention the challenges involved.
- Conclude with a way forward.
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Shubham
Decent attempt.
Your concept is fine. Presentation is also decent.
Introduction is decent. You can mention that no additional effort or expense is done by companies on obtaining such profits on which these taxes apply. Good use of example.
Need of windfall tax is also well written. Further, you can mention pandemic recovery and supply issues; widening income inequality; grotesque greed of companies which need to be controlled.
In challenges, you could additionally mention the difficulty in calculating such profits, populist and politically opportune nature of such taxes, Issue of determining who should be taxed (small companies, startups or only big companies) etc. Loss in investor confidence, subjectivity and absence of proper guidelines are also fine issues that you have highlighted.
Conclusion is fine.
Keep practicing. 🙂
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Alankrit
Decent attempt. Presentation is good, content is also fine.
In introduction, you have explained it decently, example of the energy price-rise as a result of the Russia-Ukraine conflict which has led to supernormal profits for energy companies can be mentioned.
Need of the tax has also been well written, since no extra effort is required for windfall profits, you can frame the point regarding environmental exploitation better. Other points are good, dimension of COVID 19 and the need to put the economy on a recovery path can also be added.
In challenges, you could additionally mention the difficulty in calculating such profits, populist and politically opportune nature of such taxes, Issue of determining who should be taxed (small companies, startups or only big companies) etc. Loss in investor confidence, tax evasion etc are good points. Export competitiveness decrease is a result of multiple factors, so putting the blame solely on windfall tax can be avoided. There is a difference in increase in regular corporate tax and windfall tax which should be kept in mind.
Conclusion is fine.
Keep practicing. 🙂