Introduction:
The Provisional Collection of Taxes Bill, 2023, presented in Lok Sabha on 13th December 2023 as Bill No. 158, aims to confer immediate effect for a defined duration on provisions related to customs and excise duties. This article delves into the bill’s key aspects, including the power of the Central Government to make declarations, the impact of such declarations, and the proposed repeal of the 1931 Act.
Detailed Analysis:
1. Short Title and Definition: The Act’s short title is “Provisional Collection of Taxes Act,” with a crucial definition of “declared provision” referring to provisions in a Bill subject to a declaration under section 3.
2. Power to Make Declaration: Section 3 empowers the Central Government to insert a declaration in a Bill, deeming it expedient in the public interest for certain provisions related to customs or excise duties to have immediate effect under this Act.
3. Effect and Duration: Declared provisions gain legal force immediately after the Bill’s introduction, ceasing to be effective under specified conditions, including enactment or government direction. Refunds are outlined in cases where a declared provision is amended or ceases to have legal force.
4. Refunds in Certain Cases: The Act specifies scenarios for refunding duties collected, ensuring fairness and compliance when a declared provision undergoes changes or loses legal force.
5. Repeal of Previous Act: The Bill proposes the repeal of the Provisional Collection of Taxes Act, 1931, marking a significant legislative change in tax collection procedures.
Statement of Objects and Reasons: The statement provides insight into the Bill’s objectives, emphasizing immediate effects on customs and excise duties and the repeal of the 1931 Act.
Financial Memorandum: The Bill’s financial implications are outlined, assuring no expenditure from the Consolidated Fund of India, thus maintaining fiscal responsibility.
Conclusion:
The Provisional Collection of Taxes Bill, 2023, represents a strategic move by the Government to streamline and expedite the imposition or increase of customs and excise duties. The provisions outlined in the Bill, coupled with the proposed repeal of the 1931 Act, mark a significant step toward modernizing tax legislation. As the Bill progresses through Lok Sabha, its implications for fiscal policy and governance will undoubtedly shape India’s economic landscape. Stay informed about this crucial legislative development that could impact businesses and taxpayers alike.
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AS INTRODUCED IN LOK SABHA
Bill No. 158 of 2023
THE PROVISIONAL COLLECTION OF TAXES BILL, 2023
A
BILL
to provide for the immediate effect for a limited period of provisions in Bills relating to the imposition or increase of duties of customs or excise.
BE it enacted by Parliament in the Seventy-fourth Year of the Republic of India as follows:—
1. Short title.
This Act may be called the Provisional Collection of Taxes Act,
2. Definition.
In this Act, a “declared provision” means a provision in a Bill in respect of which a declaration has been made under section 3.
3. Power of Central Government to make declaration.
Where a Bill to be introduced in Parliament on behalf of the Government provides for the imposition or increase of a duty of customs or excise with or without change in tariff classification, the Central Government may cause to be inserted in the Bill a declaration that it is expedient in the public interest that any provision of the Bill relating to such imposition or increase shall have immediate effect under this Act.
4. Effect of declarations under this Act, and duration thereof.
(1) A declared provision shall have the force of law immediately on the expiry of the day on which the Bill containing it is
(2) A declared provision shall cease to have the force of law under the provisions of this Act—
(a) when it comes into operation as an enactment, with or without amendment;
(b) when the Central Government, in pursuance of a motion passed by Parliament, directs, by notification in the Official Gazette, that it shall cease to have the force of law; or
(c) if it has not already ceased to have the force of law under clause (a) or clause (b), then on the expiry of the seventy-fifth day after the day on which the Bill containing it was introduced.
5. Refunds to be made in certain cases.
(1) Where a declared provision comes into operation as an enactment in an amended form before the expiry of the seventy-fifth day after the day on which the Bill containing it was introduced, refunds shall be made of all duties collected which would not have been collected if the provision adopted in the enactment had been the declared provision:
Provided that the rate at which refunds of any duty may be made under this sub-section shall not exceed the difference between the rate of such duty proposed in the declared provision and the rate of such duty in force when the Bill was introduced.
(2) Where a declared provision ceases to have the force of law under clause (b) or clause (c) of sub-section (2) of section 4, refunds shall be made of all duties collected which would not have been collected if the declaration in respect of it had not been made.
6. Repeal.
The Provisional Collection of Taxes Act, 1931 is hereby repealed.
STATEMENT OF OBJECTS AND REASONS
The Provisional Collection of Taxes Bill, 2023 provides for giving immediate effect for a limited period to provisions in Bills relating to the imposition or increase of duties of customs or excise, with or without change in tariff classification. The Bill also provides for the repeal of the Provisional Collection of Taxes Act, 1931.
2. The Bill seeks to achieve the above objectives.
NIRMALA SITHARAMAN.
NEW DELHI;
The 5th December, 2023.
FINANCIAL MEMORANDUM
The provisions of the Bill do not involve any expenditure of recurring or non-recurring nature from the Consolidated Fund of India.
LOK SABHA
————
A
BILL
to provide for the immediate effect for a limited period of provisions in Bills relating to the imposition or increase of duties of customs or excise.
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(Smt. Nirmala Sitharaman, Minister of Finance and Corporate Affairs)
