The Personal expenditure tax is a direct tax progressively imposed on the expenditures made by individuals and families. So far this kind of taxation has been implemented only in India from 1958 to 1966 and Ceylon from 1959 to 1963.The personal expenditure is regarded another tool in addition to the income tax and net wealth tax that can be used to curb luxurious, consumption and to check tax evasion.The implementation of the personal expenditure tax requires a rather developed tax system.It is obvious that at the time it was put into force in India, the conditions were far from being ideal. The primary reasons for the failure of this taxation in India, is that the tax rate was different from what Kaldor proposed and high deduction rates were introduced. Furthermore, that the tax officers were assigned extremely heavy responsibilities also led to some problems.