Name - Chandrika Choudhary

Roll No. 2013038

Subject Law of Taxation
Project Topic Scope of taxing powers of Parliament State Legislature and Local
Bodies
Objective By the study of this project we will understand the whole concept of
Taxing and what is the scope of Taxing Powers of Parliament State Legislature and
Local with the help of some case laws.
Research Methodology For this project the research methodology is doctrinal. The
information and data for the project will be from various taxation law and
constitutional law books, articles and other web sources. The research will also
include the case law to explain the topic more clearly.

ABSTRACT
Power of tax, being inherent in an independent state for its existence and survival by the furtherance of
its multifarious functions, the same does not require delegation from the supreme law of the land.
However, exercise of such power upon the inhabitants is subject to limitations imposed by the power, by
its very nature, or by the Supreme law of the land, the Philippine Constitution. To tax a subject matter,
person, property or excise, there must be a valid law imposing the same. Validity of a tax measure
presupposes the fact that it has overcome the test and scrutiny against it. Tax measures duly passed by
the legislative department, the Congress or the local legislative under its delegated power, enjoy the
presumption of validity and he who controverts has the duty of proving that the same is otherwise.
By nature, power to tax is inherent in a sovereign estate so that the grant of which is not
necessary but the exercise is provided safeguards and limitations. This means that the state needs not be
empowered by its constitution or any mandate for it to be allowed to tax. Such power co-exists
with the state and thus, grant is not necessary. What are being provided by the supreme law
of the land, the Constitution, are the guidelines and the limit on the exercise of the power. It wishes to
curtail the exercise in such a way as not to abuse and misuse said power to the detriment of the majority
and to the advantage of the selected few.
To give a more meaningful power, power of taxation is essentially unlimited and plenary. This means
that the state can tax on anything, anytime, anywhere, and at any amount. Example is the issue on taxing
short messaging (SMS or commonly known as text message through mobile phones)
. The author in on the humble view that there could be nothing wrong on taxing this
item as it primarily belongs to the state. What keeps them perhaps in the meantime is the
impact to the poor and under privileged depending primarily on the medium to communicate their
loved ones from other places. This follows however, that the limitations and guidelines for the said
purpose had been properly observed.