z:\ ambedkar\vol-02\vol2-09.indd MK SJ+DK 21-9-2013 693
EVIDENCE : SIR EDWARD BENTHALL AND OTHERS 693
a question with regard to that part of your statement dealing with Federal Finance. I think (I do not know whether I am putting it correctly) you attach a great deal of importance to uniformity of taxation in India ? Sir Edward Benthall : Yes.
- Dr. B. R. Ambedkar : And on that account, you have made the suggestion that almost all sources of Revenue, as between the Centre and the Provinces, should be segregated at the Centre, and that the Centre should divide ? Is that not so ?
Sir Edward Benthall : Do we make that suggestion ?
- Dr. B. R. Ambedkar : I am summing it up generally, that you want that almost all the principal taxes, at any rate, should be levied by the Centre in order that there may be uniformity of taxation ?
Sir Edward Benthall : We did not go so far as to say that We desired uniformity, but we did not go so far as to say that all taxes should be levied by the Centre.
- Dr. B. R. Ambedkar : How would you otherwise have uniformity of taxation, if there was not one tax levying authority in India as a whole ?
Sir Edward Benthall : Some methods of co-ordination might be devised.
- Dr. B. R. Ambedkar : Suppose, for instance, we adopted the principle that a Province was to levy a surcharge on Income Tax for Provincial purposes, that would cut across the principle of uniformity ?
Sir Edward Benthall : Yes ; we are totally opposed to that.
- Dr. B. R. Ambedkar : Then again, you oppose terminal taxes ?
Sir Edward Benthall : We are opposed to them on principle, and we have suggested that any taxes which are likely to lead to inter-Provincial Customs duties or inter-Provincial barriers, should require Federal approval. That is the purport of our evidence.
- Dr. B. R. Ambedkar : That would ultimately mean that there would be segregation of the sources of taxation ; either the Province could not levy, or could levy only with the prior approval of the Centre ?
Sir Edward Benthall : There would be a third method of devising some scheme of co-ordination, I think.
- Dr. B. R. Ambedkar : I do not know. Have you any method to suggest as to how this co-ordination is to be brought about ?
Sir Edward Benthall : I think there are rules laid down at the present moment. Of course, at the present moment we are dealing with a unitary Government which lays down rules.
- Dr. B. R. Ambedkar : We want to look at this thing, surely, from the standpoint of the Provincial Autonomy which we are contemplating, and also of the responsible Government that we are introducing into the Provinces ?
Sir Edward Benthall : Yes.
- Dr. B. R. Ambedkar : Now I want to put this : From the stand point of Provincial Autonomy, it would be very difficult to realise this