JUDGMENT

A tax was imposed upon windfall2 gains of the banking sector, demonstrated to have been realized on account of sudden foreign currency fluctuations. The vires of the law was assailed in 2023 and by virtue of the interim orders obtained the effect of the law stood suspended.Historical perspective2. The imposition of windfall tax is certainly not a new phenomenon, either internationally or even domestically. The United Kingdom enacted the Energy (Oil and Gas) Profits Levy Act, 2022 imposing windfall tax and thereafter the rate of tax was retrospectively increased from twenty five to thirty five percent. In the European Union, fifteen out of twenty seven countries imposed the levy in 2022-20233. Greece imposed a ninety percent windfall tax on electricity producers in 2022. Croatia imposed a thirty three percent windfall tax in 2022. Italy imposed a forty percent windfall tax on banking companies in 2023, having effect from financial year 20214.3. Closer to home, the Excess Profits Tax Act...