The Lok Sabha on 19th December passed the Provisional Collection of Taxes Bill 2023, that seeks to give immediate effect to the changes in customs and excise duties announced in the Budget. It repeals The Provisional Collection of Taxes Act, 1931.
Key points
- The bill sought to obtain the authority from Parliament to provisionally levy and collect the newly imposed or increased duties of customs and excise for 75 days.
- The bill paves the way for provisionally effect changes in customs and excise duties announced in the Budget from midnight.
- The bill comes with a provision to refund taxes collected that have not been incorporated in the Finance Bill.
- While the changes in rates of income and corporate taxes, incorporated in the Budget announced on February 1, are effective from April 1 or a notified date, most of the changes in customs and excise duty rates become effective from midnight.
- The Bill provides for the “immediate effect for a limited period” of provisions in Bills relating to the imposition or increase of duties of customs or excise.
- By invoking this particular Act, the government is able to temporarily ensure, till the time the Finance Bill gets passed, no speculative activities are happening.
