Levy of water Tax

For the purposes of this Act, the Government shall levy, on premises situated in an area where water supply is made by it, a tax at such rate not being less than two per cent and not more than ten per cent of the assessed annual value of the premises as the Government may, from time to time, by notification, specify and different rate of such tax may be specified for different areas, after taking into consideration of the economic condition of the people residing in that area: Provided that no such tax shall be levied and collected in any area where such tax is already being collected by any local authority or any other authority under the provision of Sikkim.