Which of the following statements is/are correct?
- Income inequality or the “wealth gap” has declined in the last 10 years as per Oxfam’s Report.
- Windfall Tax is expected to increase the problem of unfair distribution of the resources in the economy.
Select the correct answer using the code given below:
| a) | 1 only |
| b) | 2 only |
| c) | Both 1 and 2 |
| d) | Neither 1 nor 2 |
Correct Answer
D
Explanation
- According to the Oxfam’s Report “Survival of the Richest: The India story”, the richest 1% in India now own more than 40% of the country’s total wealth, while the bottom half of the population together share just 3% of wealth between 2012 and 2021. Hence, statement 1 is not correct.
- Windfall taxes are taxes imposed on unexpected or extraordinary profits, such as those made during times of economic crisis, war, or natural disasters.
- The idea behind this is that these companies have benefited from the rising prices of food and other essentials and should contribute a fair share to help address poverty and inequality. This measure could generate revenue for governments to support social programs that help reduce poverty and inequality. Hence, statement 2 is not correct
Subject:
Current Affairs > Indexes and Rankings