(1) Subject to the other provisions contained in this Act, there shall be levied on all passengers carried by railway from or to any notified place a terminal tax in respect of every railway ticket (whether single or return) at such rates not exceeding the maximum rates as the Central Government may, by notification in the Official Gazette, fix; and such notification shall specify the date with effect from which, and may also specify the period for which, the terminal tax shall be leviable:
Provided that where no such period is specified in the notification, the terminal tax shall be leviable for so long as this Act is in force.
(2) Subject to the maximum rates, different rates of terminal tax may be fixed,—
(a) in relation to different notified places; and
(b) in respect of short-distance passengers and long-distance passengers; provided that the rate in respect of short-distance passengers shall be always lower than that in respect of long-distance passengers.
Explanation.—In this sub-section a passenger travelling by railway from or to any notified place to or from a distance of not more than one hundred and fifty miles shall be deemed to be a short-distance passenger and any other passenger travelling by railway shall be deemed to be a long-distance passenger.