A levy is a temporary tax collected by federal, state or local governments and used for a stated public purpose. A taxpayer can be liable for various levies’ depending on their annual taxable income. In comparison, a tax is usually a general contribution imposed on individuals, properties or businesses collected into the government’s consolidated fund and allocated according to government budgets.
Source: Is it a levy, or is it a tax, or both?(Madeline Taylor) Australia
In India both the words are used synonymously.