The government of West Bengal has recently imposed a tax on the entry of goods into the local areas of the State. According to the Finance Minister, this will help meet 'cost for facilitating trade and industry in the State'. Many States impose entry tax on goods coming into their areas of jurisdiction. Entry Tax is imposed by States under the provisions of Entry 52 of the State List and Article 304 of the Indian Constitution. These read as under: Entry 52, List II of the Seventh Schedule (State List) “Taxes on the entry of goods into a local area for consumption, use or sale therein.” Article 304: Restriction on trade, commerce and intercourse among States "Notwithstanding anything in article 301 or article 303, the Legislature of a State may by law – (a) impose on goods imported from other States or the Union territories any tax to which similar goods manufactured or produced in that State are subject, so, however, as not to discriminate between goods so imported and goods so manufactured or produced; and (b) impose such reasonable restrictions on the freedom of trade, commerce or intercourse with or within that State as may be required in the public interest: Provided that no Bill or amendment for the purposes of clause (b) shall be introduced or moved in the Legislature of a State without the previous sanction of the President." Are there any restrictions to the power of States to impose entry taxes? The use of the words 'so, however, as not to discriminate ' and 'reasonable restrictions' in the above articles constrain the power of States to some extent. Several petitions challenging the imposition of entry taxes have been filed before courts. In 2008, the Supreme Court has referred the entry tax issue to a larger bench. This case is currently pending. What are the arguments in favour and against the imposition of such taxes? Arguments in favour of entry tax
Arguments against entry tax
In addition to the above, it can also be said that an entry tax goes against the principle envisaged under the Goods and Services Tax (GST) regime. The GST aims to create a common market throughout India without any taxes on inter-state movement of goods. A Constitutional Amendment Bill to facilitate the implementation of GST is currently pending in Parliament.
The Chief Minister of Kerala has made a statement in the Assembly this week agreeing to look into the demand to change the name of the state to Keralam to make it conform to the state's name as pronounced in Malayalam. A few major cities in Kerala have already been renamed in the recent past in an attempt to erase the Anglican influence in their naming. Another proposal to rename the state of Orissa to Odisha has recently been approved by the Union Cabinet. This is part of a trend that gained momentum after the renaming of Bombay, Madras and Calcutta. Bombay was renamed Mumbai - derived from name of Goddess Mumbadevi - in1995 when the Shiv Sena - BJP combine won the state Assembly elections. In the following year Madras was renamed to Chennai and in 2001 Calcutta was renamed Kolkata. The renaming of a state requires Parliamentary approval under Article 3 and 4 of the Constitution, and the President has to refer the same to the relevant state legislature for its views. However, the change in name of official language would require a constitutional amendment since it requires a change in the 8th schedule. In the case of Orissa, the state legislature has approved in August 2008, change to the name of Orissa to Odisha and the name of its official language from Oriya to Odia. The central cabinet approved the proposal, and 2 bills The Orissa (Alteration of name) Bill, 2010 and the Constitution (113th Amendment) Bill has been introduced in Parliament.
