constituent assembly of india debates (proceedings)- volume vii

use or consumption within the Province, of goods liable to taxes by the
Province on sale, turnover or purchase". This addition is suggested in order
to prevent avoidance by importing for personal use from outside the
province.
32. One of the Provincial Memoranda has suggested that the entry "State Lotteries" should be
transferred to the Provincial List, but, as we do not wish to encourage State Lotteries, we should prefer
the subject to remain Central where, too, we hope, it will not be used.
Shares in certain taxes
33. We have no new items to suggest for insertion in the Provincial Legislative List.
34. The Federal Government will levy and collect all the taxes in the Federal Legislative List. But,
according to our recommendations in the following paragraphs the Centre will retain the whole of the net
proceeds of the following taxes only, viz.: -
(1) Duties of customs, including export duties.
(2) Taxes on capital value of assets and taxes on the capital of Companies.
(3) Taxes on Railway fares and freights.
35. At present, the Central Government shares the net proceeds of the Jute Export duties with the
jute-growing Provinces and has to hand over to the Provinces the whole of the net proceeds of taxes on
railway fares and freights, if levied. As regards the latter, we recommend that, if such taxes are to be
levied at all, they should be wholly Central, for, we cannot see any difference in substance between such
taxes and a straight addition to fares and freights. As regards the former we are of the opinion that an
export duties are capable of very limited application and have to be levied with great caution, they are
unsuitable for sharing with the Provinces.
36. It is necessary, however, to compensate the Provinces concerned for the loss of this item of
revenue and we recommend that, for a period of 10 years or till the export duties on jute and jute
products are abolished, whichever may be earlier, fixed sums as set out below be paid to these
Governments as compensation every year.
PROVINCE AMOUNT
Rs.
West Bengal . . . . 100 lakhs.
Assam . . . . . . 15 lakhs
Bihar . . . . . . 17 lakhs
Orissa. . . . . . 3 lakhs
In arriving at these figures which we have based on the figures of pre-war years, we have taken all
relevant circumstances into account, and in particular the concentration of manufacture in West Bengal.
If at the end of ten years, which we think should be sufficient to enable the Provinces to develop their
resources adequately, the Provinces still need assistance in order to make up for this loss of revenue, it