Finance Minister Nirmala Sitharaman launched a Bill within the Lok Sabha on Wednesday to repeal the Provisional Collection of Taxes Act of 1931 and substitute it with a brand new law, that will allow the federal government to give quick impact to impositions or hikes in customs and excise duties on some items with out altering their tariff classifications.
“Assume, if in the Finance Bill, we bring in some kind of a tax proposal and it gets announced in the Budget. But the financial year by which it gets passed, if there are critical announcements made on customs or any other tax, it can lead to a lot of speculation,” the minister defined because the rationale for The Provisional Collection of Taxes Bill, 2023.
“Thus, by invoking this particular Act, we’re able to temporarily ensure, till the time the Finance Bill gets passed, that no speculative activities are happening because it’s part of the Bill,” she added.
