🔒 This unit is part of the complete package (Rs 300) — with the full notes of every unit, the prescribed cases and model questions.
✅ Unit 1 of this subject is free to read: open Unit 1 → · 🛒 order the package →
✅ Unit 1 of this subject is free to read: open Unit 1 → · 🛒 order the package →
⚠️ AI-assisted notes — please read before you buy. These paid notes are prepared with the help of Artificial Intelligence and then reviewed by us. They are a study aid only — not a replacement for your prescribed textbook, the official TU syllabus or your own teacher, and we cannot guarantee that every citation, section number or case reference is error-free. No refund is possible once the PDF has been delivered, so please buy at your own risk. Read the free Unit 1 of your subject first and judge the quality yourself — place an order only if you understand and accept this.
Unit 3: Constitution and Tax Laws
3.1 Fundamental Rights and Taxation
Fundamental rights discipline taxation:
- Article 18 (equality): tax classifications must be rational; arbitrary discrimination among similarly situated taxpayers violates equal protection.
- Article 25 (property): property may be taxed — the Article’s own proviso contemplates progressive taxation — but a tax that destroys the property’s substance crosses from taxation to deprivation.
- Article 20 (justice): the procedure around assessment — notice, hearing, reasons — carries the fair-hearing guarantee.
- Article 27 (information) and the fiscal transparency idea: taxpayers are entitled to know the law they are charged under (legality’s informational face).
3.2 Constitutional Power of Taxation
Nepal’s federal fiscal constitution (Part 5 and the financial-procedures provisions):
- No tax except by law (Article 115’s principle) — the taxation clause of the Constitution’s money framework.
- Division of revenue powers: Schedule 5 (federal — income tax, VAT, customs, excise), Schedule 8 (local — property-type and service-type local taxes), Schedule 9 (concurrent, all three tiers), with the fiscal-equity machinery of Articles 59–60 (revenue sharing; the National Natural Resources and Fiscal Commission).
- Finance bills only in the House of Representatives (Article 110) — taxation’s democratic anchor.
- Annual budget on 15 Jestha (Article 119); Appropriation Act (Article 120) for spending.
- Provincial assemblies legislate within their lists for provincial taxes; local levels within theirs.
| Tier | Tax examples under the lists |
|---|---|
| Federal | Income tax, VAT, customs, excise |
This is a preview. The complete Taxation Law notes — full unit, Exam Focus box and model questions — are in the PDF / full version. Get the complete notes →