3.2 Constitutional Power of Taxation

Nepal's federal fiscal constitution (Part 5 and the financial-procedures provisions):1. No tax except by law (Article 115's principle) — the taxation clause of the Constitution's money framework.2. 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).3. Finance bills only in the House of Representatives (Article 110) — taxation's democratic anchor.4. Annual budget on 15 Jestha (Article 119); Appropriation Act (Article 120) for spending.5. Provincial assemblies legislate within their lists for provincial taxes; local levels within theirs.TierTax examples under the listsFederalIncome tax, VAT, customs, exciseProvincialList-6 taxes (within their powers)LocalHouse and land (integrated property tax type), business/ service-type local rates, land revenue (as allocated)