A bill which imposes or varies any tax or duty in which states are in...
To protect the interest of states in the financial matters, the Constitution lays down that the following bills can be introduced in the Parliament only on the recommendation of the President
1. A bill which imposes or varies any lux or duty in which states are interested;
2. A bill which affects the principles on which money are or may be distributable to states; and
3. A bill that imposes any surcharge on any specified tax or duty for the Centre's purpose.
A bill which imposes or varies any tax or duty in which states are in...
The correct answer is option 'A' - Only on the recommendation of the President.
Explanation:
In India, the power to impose or vary taxes and duties lies with the Parliament. However, when it comes to taxes or duties in which the states are interested, there are certain restrictions and guidelines in place.
The President of India plays a significant role in this process. Here is a detailed explanation of why option 'A' is the correct answer:
1. Role of the President:
The President is the head of the state and exercises executive powers on behalf of the Union government. In matters related to taxes and duties, the President is responsible for making recommendations and providing guidance to the Parliament.
2. Recommendations of the President:
According to Article 274 of the Indian Constitution, any bill that imposes or varies any tax or duty in which states are interested can only be introduced in the Parliament on the recommendation of the President. This means that the President must recommend the bill before it can be presented for debate and voting.
3. States' Interest:
The phrase "in which states are interested" refers to taxes or duties that directly affect the states' finances or revenue. Some examples include goods and services tax (GST), excise duties, and customs duties. These taxes and duties have a direct impact on the revenue generated by the states.
4. Importance of Presidential Recommendation:
The requirement of a presidential recommendation ensures that the Union government considers the interests and concerns of the states before introducing or varying any tax or duty. It acts as a safeguard to prevent any arbitrary or unilateral decision by the Union government that may negatively affect the states.
5. Executive Oversight:
By requiring the President's recommendation, the Constitution ensures executive oversight in matters related to taxes and duties. The President, being the head of the state, represents the interests of the Union as well as the states. The recommendation process allows for a balanced approach and encourages consultation between the Union government and the President.
In conclusion, a bill that imposes or varies any tax or duty in which states are interested can only be introduced in the Parliament on the recommendation of the President. This requirement ensures that the interests of the states are taken into account and provides executive oversight in matters related to taxes and duties.