Mainly tax collection authority will vest in village, town or District Panchayat. State or Central Government will have no such powers. Central Government will have only one tax i.e. custom duty on import items. Whatever tax income Village or District will earn, 80% will be kept by them and 20% will be passed on to the State Government from where Central Government will have their proper allocation. So automatically, repressing force of Governments will decrease. Governments will become somewhat subordinate to Districts and Villages. When this happens, Government will become real Government for people. Their repressing capacity will be no more. Their guiding and helping capacity to the people will cultivate considerably. In this circumstances, obviously people will have no any reason to fear of Government. So people will become fearless. Then real democracy will develop. This will be real swaraj.
However it is possible that State or Central Government may be assigned the responsibility to collect certain taxes. Then also 80% share of the taxes will have to be distributed to the villages and districts immediately. So Government will have no any control on 80% of the tax revenue. So Governments will have to make full economy in their expenses. They can not afford to give big big salaries. So present day scene that a team of a few hundred egoist IAS officers harass the entire India of 100 crores of people will be seen no more. Moreover, 80% of the tax revenue will be spent for the welfare of the village itself. So real happiness and prosperity and amenities will start increasing in villages. So people living in villages will no more be considered as subordinate citizens. On the contrary, happiness and peace in villages will be so much sufficient that villagers will not like to go to cities as it happens in Europe. When this happens there will be real balance between villages and cities. Then urbanization will also end and cities also will become pleasant places of living free from present day problems of dense population, heavy traffic and pollution.