A windfall tax (SAED) targets supernormal corporate profits arising from external crises. Recently hiked to ₹14/litre on diesel, India utilizes this tool to stabilize domestic fuel supplies, offset excise cuts, and curb inflation amidst the 2026 global energy crisis.
Click to View MoreTo combat the 2026 West Asian oil crisis, India slashed excise duties to lower consumer costs and reinstated windfall taxes on fuel exports. This strategy effectively checks inflation, prevents domestic shortages, and generates revenue to fund critical energy subsidies.
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