The government on Wednesday introduced a bill in Parliament, which seeks to give immediate effect to the changes in customs and excise duties announced in the Budget. Finance Minister Nirmala Sitharaman, while introducing the Provisional Collection of Taxes Bill, 2023, in the Lok Sabha said the provisions are curbing speculative activities following changes in customs and excise duties in the Budget.
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 Provisional Collection of Taxes Bill 2023, will replace the The Provisional Collection of Taxes Act, 1931.
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.
Sitharaman said the bill incorporates the existing provisions of the 1931 Bill.
By invoking this particular Act, we are able to temporarily ensure, till the time the Finance Bill gets passed, no speculative activities are happening, Sitharaman said.