(1) Union, state and local levels may levy taxes on matters within their economic jurisdiction and collect revenue from those sources. However, the arrangements for taxing and collecting revenue on matters within the common list and matters not included in the list at any level will be as determined by the Government of Nepal.
(2) The government of Nepal will make arrangements for fair distribution of the collected revenue to the union, state and local levels.
(3) The amount of financial transfers to be received by the provinces and local levels will be in accordance with the recommendations of the National Natural Resources and Finance Commission.
(4) The Government of Nepal will distribute financial equalization grants to provinces and local levels based on their expenditure needs and revenue capacity.
(5) The province will distribute the financial equalization subsidy according to the provincial law based on the subsidy received from the government of Nepal and the revenue raised from its own sources based on the expenditure needs and revenue capacity of the subordinate local level.
(6) Provisions related to the distribution of conditional grants, supplementary grants or special grants for other purposes provided by the Government of Nepal from the Federal Reserve Fund shall be in accordance with the federal law.
(7) Distribution of revenue between the union, state and local levels should be done in a balanced and transparent manner.
(8) National policy, national needs, autonomy of provinces and local levels, services to be provided by provinces and local levels to the people and financial rights granted to them, ability to collect revenue, potential and use of revenue, assistance in development and construction while making the federal law on revenue sharing. , regional imbalance, reduction of poverty and inequality, end of deprivation, emergency work and help to meet temporary needs should be given attention.