Section 5 in THE CONSTITUTION (EIGHTIETH AMENDMENT) ACT, 2000
5. The benefits of the scheme have been listed by the Commission in para 13.2. and 13.3 and 13.18 of their reports. These areas follows:-
(i)with a given share being allotted to the States in the aggregate revenues from Central taxes, the States will be able to share the aggregate buoyancy of Central taxes;(ii)the Central Government can pursue tax reforms without the need to consider whether a tax is sharable in the states or not;(iii)the impact of fluctuations in Central tax revenues would be felt alike by the Central and the State Governments;(iv)Should the taxes mentioned in articles 268 and/or 269 from part of this arrangement, there will be greater likelihood of their being tapped; and(v)the progress of reforms will be greatly facilitated if the ambit of tax sharing arrangement is enlarged so as to give greater certainty of resource flows to, and increased flexibility in tax reform.
