Distribution of proceeds of taxes

(1) All taxes and duties which shall be levied and collected by the Government, shall be distributed between the Government and the Municipalities in the manner provided in sub-section (2). (2) Such percentage as may be prescribed of the net proceeds of such taxes and duties in any financial year (which shall form part of the Consolidated Fund of the National Capital Territory of Delhi) shall, if the Legislative Assembly of the National Capital Territory of Delhi by appropriation made by law in this behalf so provides, be assigned to the Municipalities and shall be distributed among the Municipalities in such percentage and in such manner as may be prescribed. (3) In this Chapter, “prescribed” means prescribed by the Government by order after considering the recommendations of the Finance Commission.