constituent assembly of india debates (proceedings)- volume vii

99. We enclose two Appendices (IV and V) one of which sets out in detail, as far as we have been
able to collect, the rights and immunities enjoyed by various States, and the other setting out the total
budgets of certain States and the part played by Land Customs in those budgets.
Summary of Recommendations
100. (1) No major change to be made in the list of taxes in Federal Legislative List as recommended
by the Union Powers Committee. (Para. 30)*
(2) The limit of Rs. 50 to be raised to Rs. 250 for taxes on professions etc. levied by Local Bodies.
(Para 30)*
(3) An entry to be made in the Federal Legislative List of a new item "Stock Exchanges and Futures
Markets" etc. (Para. 30)*
(4) A few minor changes of a drafting nature to be made in the list of taxes in the Provincial
Legislative List; and no new items for insertion in the Provincial Legislative List. (Paras 31--33)*
(5) The Centre to retain the whole of the net proceeds of the following taxes, viz., (a) Duties of
Customs including Export Duties; (b) tax on capital value of assets, etc.; (c) taxes on Railway fares and
freights; and (d) Central Excises other than on tobacco. (Para 34)*
(6) The grant of fixed assignments for a period of years to the jute-growing provinces to make up for
their loss of revenue. (Paras 35-36)*
(7) The net proceeds of the following taxes to be shared with the Provincial Governments, viz. (1)
Income-tax, including Corporation Tax; (2) Central Excise on Tobacco; (3) Estate and Succession Duties.
(Paras. 38--42)*
(8) The suggestion that the Centre should be allotted only the excises on specified commodities, not
accepted (Para 41)*
(9) Federal Stamp Duties and Terminal taxes on goods etc., to be administered centrally, but wholly
for the benefit of the provinces. (Paras 43 and 44)*
(10) Larger fixed subventions than now, necessary for Assam and Orissa, and subventions for limited
periods for East Punjab and West Bengal, but no precise figures recommended for lack of data. (Paras 45
and 46)*
(11) Grants-in-aid on the Australian model not favoured. (Para 48)*
(12) Merging the tax on agricultural income in the Central Income-tax and similarly the Estate and
Succession Duties on agricultural property in the similar duties on property in general to be examined in
consultation with Provincial Government and transfers made from the Provincial List of subjects, if
necessary. (Para 49)*
(13) Not less than 60 per cent. of the net proceeds of Income-tax, including Corporation Tax and the
tax on Federal emoluments, to be divided between Provinces in the following manner:--
20 per cent. on the basis of population, 35 percent. on the basis of collection and 5 per cent as an
adjusting factor to mitigate hardship. (Paras 55 and 56)*