Introduction

Article 271 of the Indian Constitution provides for the imposition of a surcharge on certain duties and taxes for the purposes of the Union. The surcharge is an additional levy imposed on specific duties and taxes to generate additional revenue for the central government. This article aims to explore the provisions and implications of Article 271 in detail.

Understanding Article 271

Article 271 empowers the Parliament to levy a surcharge on certain duties and taxes imposed by the Union for its purposes. The surcharge is an extra charge imposed over and above the existing duties and taxes. It is a temporary measure to raise additional revenue for specific purposes determined by the central government.

Types of Duties and Taxes

The surcharge can be imposed on various duties and taxes levied by the Union, including but not limited to: 1. Income Tax: The surcharge on income tax is levied on individuals and corporations with high income levels. It is an additional tax imposed on the existing income tax liability. 2. Goods and Services Tax (GST): The surcharge on GST is applicable to specific goods and services. It is an additional charge imposed on the regular GST rate. 3. Excise Duty: The surcharge on excise duty is imposed on the manufacture or production of goods within the country. It is an additional levy over and above the regular excise duty. 4. Customs Duty: The surcharge on customs duty is levied on the import and export of goods. It is an extra charge imposed on the regular customs duty.

Purposes of the Union

The surcharge collected under Article 271 is utilized for specific purposes determined by the central government. These purposes may include: 1. Infrastructure Development: The revenue generated from the surcharge can be used for the development of infrastructure projects such as roads, railways, airports, and ports. 2. Social Welfare Programs: The surcharge funds can be allocated to various social welfare programs aimed at upliftment and betterment of marginalized sections of society, including education, healthcare, and poverty alleviation. 3. Defense Expenditure: The surcharge can be utilized to meet the defense expenditure of the country, including the modernization and strengthening of the armed forces. 4. Economic Stimulus: The surcharge funds can be used to provide economic stimulus during times of financial crisis or for promoting specific sectors of the economy.

Implications and Criticisms

While Article 271 provides the central government with the power to levy a surcharge, it has faced criticism on certain grounds: 1. Burden on Taxpayers: The imposition of a surcharge increases the tax burden on individuals and businesses, especially those falling under higher income brackets. This can be seen as an additional financial burden on taxpayers. 2. Lack of Transparency: Critics argue that the utilization of surcharge funds lacks transparency, and there is often a lack of accountability in its allocation and expenditure. This can lead to misuse or misappropriation of funds. 3. Inequitable Distribution: The allocation of surcharge funds may not always be equitable, with certain regions or sectors receiving a larger share of the funds. This can lead to regional or sectoral imbalances in development. 4. Potential for Misuse: There is a concern that the surcharge provision can be misused by the government for political or personal gains, without proper justification or accountability.

Conclusion

Article 271 of the Indian Constitution provides the central government with the power to impose a surcharge on certain duties and taxes for the purposes of the Union. This additional levy aims to generate extra revenue for specific purposes such as infrastructure development, social welfare programs, defense expenditure, and economic stimulus. While the surcharge can be a useful tool for generating additional funds, it is essential to ensure transparency, accountability, and equitable distribution of the surcharge funds to address the criticisms associated with its implementation.