Out of the proceeds of the tax, penalities, interest or
other amounts recovered under this Act, there shall be paid
annually to such local authorities except Municipalities and
Municipal Corporations whose employees are getting salaries and pensions through Government treasuries as
were levying a tax on professions, trades, callings and
employments, immediately before the commencement of
this Act, such amounts on the basis of the highest
collections of such taxes, penalities and interest made by
them in any year during the period of three years
immediately preceding such commencement as may be
determined by the Government in this behalf.