Article 288 of Constitution of India – Exemption from taxation by States in respect of water or electricity in certain cases
Article 288 of Constitution of India deals with Exemption from taxation by States in respect of water or electricity in certain cases
Original Text of Article 288 of Constitution of India
(1) Save in so far as the President may by order otherwise provide, no law of a State in force immediately before the commencement of this Constitution shall impose, or authorise the imposition of, a tax in respect of any water or electricity stored, generated, consumed, distributed or sold by any authority established by any existing law or any law made by Parliament for regulating or developing any inter-State river or river-valley. Explanation.—The expression “law of a State in force” in this clause shall include a law of a State passed or made before the commencement of this Constitution and not previously repealed, notwithstanding that it or parts of it may not be then in operation either at all or in particular areas.
(2) The Legislature of a State may by law impose, or authorise the imposition of, any such tax as is mentioned in clause (1), but no such law shall have any effect unless it has, after having been reserved for the consideration of the President, received his assent; and if any such law provides for the fixation of the rates and other incidents of such tax by means of rules or orders to be made under the law by any authority, the law shall provide for the previous consent of the President being obtained to the making of any such rule or order.
Questions related to Article 5 of Constitution of India
Article 288 provides exemption from state taxation for the Union Government in respect of water or electricity used or distributed by it, unless Parliament allows such taxation, as per the Constitution of India.
Article 288 ensures that states cannot levy taxes on Union property related to water or electricity without Parliamentary consent, safeguarding Union functions under the Indian Constitution.
As per Article 288 and explained in Indian Kanoon, states cannot impose such taxes unless expressly permitted by a law made by Parliament.
Article 288, part of the Articles of Indian Constitution, supports the financial autonomy of the Union by restricting state interference in its utility-related expenditures.
You can refer to Indian Kanoon for detailed legal analysis and case laws, or explore simplified UPSC notes on the Constitution of India for a clear understanding of Article 288.
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