The tenth finance commission has proposed the scheme of devolution of taxes as a better way to manage the tax reforms in the present condition of Indian economy based on 26% of centre and 3% of state parts in taxes, the new schemes proposes to consolidate all central taxes as an alternative by partly and separately dividing all taxes.
The benefits from this scheme would that the centre can introduce tax reforms. Without going into question whether states have to be paid from them or not, Article 268 and 263 related to tax will come under this schemes so their potential explanation would be possible.
More flexibility and reliability between centre- state relations will be developed under this system of transaction. When the question of distribution of takes will not arise, progress in taxation reforms will be possible cordially and efficiently. Without any political obstacles. All these advantages are seen from the implementation of “Alternative scheme of Declaration”.