3.2 Taxing Procedures (Local, Province, Central)

The three-tier division (Schedules 5, 6, 8, 9): Tier Constitutional list Tax examples Federal Schedule 5 (federal powers) Income tax, VAT, customs, excise Provincial Schedule 6 (provincial powers) The province's list — taxes within its legislative competence (entertainment-type, provincial service-type levies as assigned) Local Schedule 8 (local powers) House and land (integrated property tax), business and service- type local rates, land revenue (as allocated) Concurrent Schedule 9 Heads where all three tiers may legislate under the framework law The procedures by tier: Central: the ministry drafts; the bill travels the House of Representatives path (3.1); the IRD administers (Unit 8); Provincial: the provincial assembly legislates within its list; the province's revenue machinery administers; the same legality principle applies one tier down; Local: the local level (municipality/rural municipality) fixes rates by its laws and decisions WITHIN the statutory ceilings — the Local Government Operation Act, 2074's framework; a local levy must trace to the constitutional list and the enabling statute. The fiscal-federal machinery (Articles 59-60): revenue sharing between tiers; equalization transfers; the National Natural Resources and Fiscal Commission — the referee of the fiscal federalism (recommendations on revenue distribution and grants).