CHAPTER 12 : LEVY OF TAXES


Article 12.1 :

No any government authority from village level to central government will impose any indirect tax except custom duty on import of goods imposed by central government.

Article 12.2 :

No tax can be levied without passing the bill in the appropriate legislative authority.

Article 12.3 :

Central Government may impose direct tax on property and on income and on expenditure of people living in seven mahanagars mentioned in Article (11.10). Any system of collection of tax so imposed by Central Government will be administered by the authority of mahanagar. 50% amount of the total collection of the tax will be retained by the concerned mahanagar and 50% amount of the total tax collection will be paid to Central Government.

Article 12.4 :

No Central Government will impose any tax on any mahanagar until import duty collected by Central Government is not sufficient to meet their expenses of administration and for defence of India.

Article 12.5 :

State Government may impose direct tax on property and on income and on expenditure of people living in nagars and mahanagars except the seven mahanagars mentioned in Article (11.10). Any system of collection of tax   so imposed by State Government will be administered by the authority of nagar or mahanagar. 60% amount of the total collection of the tax will be retained by the concerned nagar or mahanagar and 40% amount of the total tax collection will be paid to State Government.

Article 12.6 :

No any State Government or Central Government will impose any type of indirect tax on urban population.

Article 12.7 :

No any State Government or Central Government will impose any type of tax direct or indirect on rural population.

Article 12.8 :

No any village will levy any compulsory tax on villagers. Any tax proposed to be levied on villagers will have to be approved by the gram sabha with at least  80% majority. 

Article 12.9 :

Any tax collection system  from the villagers will be proportional to the land holdings of the villagers i.e. tax will be on per acre basis or per hector basis.

Article 12.10 :

No any tax can be collected by the village from the landless villagers having no any other business or income except labour on the land.

Article 12.11 :

No any taluka administration or district administration can impose any direct or indirect tax on agricultural land or any agricultural produce.

Article 12.12 :

Taluka administration or district administration can levy direct tax  on income or on expenditure or on property from merchants, traders, producers, manufacturers etc. No any such tax will be levied without consulting the affected class and agreeing to the tax burden by the affected class through their trade associations.