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Parliament's power to increase a tax

I have read in Laxmikant polity book that Parliament can reduce or abolish a tax but can't increase it.. then how was the provision for increasing service tax included in the recent budget?

OR, Parliament can't increase the amount/percentage of tax mentioned in the budget but the budget itself can contain the provisions for increasing any tax..

please clarify

Comments

  • edited 4:18PM
    Yes, you're right the Parliament can only decrease or abolish a tax, but not increase it. The reason being that taxation is the job of executive, and its job of the people's representatives , i.e. parliament to protect them from undue, harsh taxes. So taxes have to be approved by the legislature ("No taxation without representation"), and its not the job of the Parliament to levy taxes.

    As per your question, taxes proposals are brought on by the executive- the council of ministers. The Parliament doesn't levy any furthur taxes. It merely approves or disapproves them.

    The Parliament doesn't propose the budget, it merely approves or rejects it. Hope that answers your question.

  • edited 4:18PM
    @AyushSinha.. thanks.. its clear now :)
  • That's why money bill is exclusive to Lok sabha as lok sabha is representation of people.
    "No taxation without representation" explains all :)

    Thanks
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