308 DR. BABASAHEB AMBEDKAR : WRITINGS AND SPEECHES
(4) Profits, if any, from Mint and Currency operations.
(5) Profits, if any, from any other Federal enterprise, such as Reserve Bank, and
(6) Direct contribution to the Crown from Federated or non-Federated States.
As regards the revenues derived from taxation under the Government of India Act, they fall under two heads; Ordinary taxation and Extraordinary taxation. Ordinary taxation includes levy from following sources :
(1) Customs duties;
(2) Export duties;
(3) Excise duties;
(4) Salt;
(5) Corporation tax;
(6) Tax on income, other than agricultural; and
(7) Property Taxes i.e., taxes on Capital value of the individual assets or a property.
The extraordinary revenue falls under following heads :
(1) Surcharges on Income-tax.
(2) Surcharges on succession duties.
(3) Surcharges on terminal taxes on goods or passengers carried by rail or air and all taxes on railway freights.
(4) Surcharges on Stamp duties, etc.
Now, while the provinces are liable to bear taxation under any of these heads whether the taxation is of an ordinary character or is of an extraordinary character, the same is not true of the States. For instance, the States are not liable in ordinary time to ordinary taxes falling under heads 6 and 7, while the Provinces are liable,
With regard to extraordinary taxation, the States are not liable to contribute even in times of financial stringency the taxes levied under items 2, 3 and 4 and even where they are liable to contribute under head
1 of the extraordinary sources of revenue, it must be certified that all other economies have been made.
There is another difference from the financial point of view between the States and the Provinces. The field of taxation for provincial Governments has been defined in the Act. A provincial Government cannot raise revenue from any source other than those mentioned in the Act. Such is not the case with the State. There is nothing in the Government of India Act, which defines the powers of a Federated State with regard to its system of taxation. It may select any source of taxation to raise revenue for the purpose of internal administration and may even levy customs duties upon articles entering its territory from a neighbouring province although that neighbouring province is a unit of the Federal Government of which the