The government on Tuesday ruled out the imposition of windfall taxes on oil refineries, saying there is no economic justification for the same.

"No Sir," said Minister of State for finance S S Palanimanickam in a written reply in the Rajya Sabha to a question whether government would agree to impose windfall taxes on oil refineries.

There is no economic justification for imposition of any windfall or excess profit tax on the profits of manufacturing units like refinery, he said.

The minister of state for finance said as a normal practice, windfall taxes are levied by the government to extract the full value of natural resources as its owner.

However, a refinery is like any other manufacturing unit where the government, as a sovereign, is entitled to a share in the profits by way of taxes on them and not as owner.

Certain quarters have earlier demanded imposition of windfall tax on oil refineries.

Windfall taxes are levied by the government against certain industries when economic conditions allow those industries to experience above-average.