Article 265

This Article reflects a core principle of constitutional governance: the power to tax is one of the most invasive powers a state has over its citizens' property, so it must never rest on the whim of officials or the executive alone. Drawing from British constitutional history (no taxation without representation) and the need to protect citizens from arbitrary financial demands, the framers made taxation strictly a legislative function, requiring that Parliament or a State Legislature enact a law before any tax can be imposed or collected.

The Supreme Court has interpreted 'authority of law' to mean a valid law that is within the legislature's competence and does not violate other constitutional provisions. In cases like Kunnathat Thathunni Moopil Nair v. State of Kerala, the Court struck down a tax law for being arbitrary and violating equality principles, showing that a law must be constitutionally sound, not merely exist on paper. Courts have also clarified the distinction between a 'tax' and a 'fee', since fees do not require the same strict legislative backing as taxes do, though both must still have some legal basis.

• Myth: Any government order or notification can create a valid tax.
  Fact: Courts have held that only a proper law passed by a competent legislature can authorize a tax; mere executive orders or notifications are not enough.
• Myth: Article 265 means all taxes must be fair or reasonable in amount.
  Fact: The Article only requires that a tax have legal backing; whether it is 'fair' involves separate constitutional principles like Article 14, which courts assess independently.