-(1) Congress may tax only for public purposes, not for private benefit. -(2) Congress may not tax exports. -(3) Direct taxes must be apportioned among the States, according to their populations. -(4) Indirect taxes must be levied at a uniform rate in all parts of the country.
What are the constitutional limitations provided in the Constitution that restrict the exercise of taxation power by the state?
Limitation on territorial jurisdiction – The power of taxation is limited only within the boundary or territory of the state. The state cannot exercise its power of taxation outside its territory. If the subject of taxation is found abroad, then, the state could not anymore tax that.
Which of the constitutional limitations are also classified as inherent limitations?
Constitutional limitations are those presented for in the constitution while Inherent limitations are those precincts that exist independently outside the power of the constitution. Inherent Limitation 1. Purpose. Raising of funds through taxes may be used for public purpose only.
Is the power of taxation subject to constitutional limitations?
The power of taxation, is however, subject to constitutional and inherent limitations. Constitutional limitations are those provided for in the constitution or implied from its provisions, while inherent limitations are restrictions to the power to tax attached to its nature. The following are the inherent limitations.
What are some of the inherent limitations of taxation?
Inherent Limitations of Taxation. Inherent limitations on Power of Taxation: A. Non Delegation of the power to Tax – the power to tax is purely legislative and it cannot be delegated by the legislature to the executive or judicial department of the government.
What is the difference between constitutional limitations and inherent limitations?
Constitutional limitations are those provided for in the constitution or implied from its provisions, while inherent limitations are restrictions to the power to tax attached to its nature.
