News-CRUX-10     21st December 2023        
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Context: Parliament has passed the  Provisional Collection of Taxes Bill, 2023 with Rajya Sabha returning it to Lok Sabha.

Provisional Collection of Taxes Bill, 2023

  • It repeals: The Provisional Collection of Taxes Act, 1931. 
  • Interim collection of taxes: The Act allows for the immediate imposition or increase in customs or excise duty through a declaration.  This declaration may be included in the government bill seeking to impose or increase such duties introduced in Parliament.  The imposition or increase will come into effect from the day after the date of introduction of the Bill.  

oIt will cease to have effect once: (i) the Bill is enacted, (ii) the central government directs so in pursuance of a motion passed by Parliament, or (iii) after the 75th day after the date of the introduction of the Bill. 

oIt also clarifies that these provisions will be applicable regardless of whether the tariff classification has changed. 

  • Refund: The Act requires that refunds be issued in certain cases.  Refunds must be issued if the declaration was enacted in an amended form, or it ceased to apply.  Refunds will be made on the difference under the declaration and the enacted provision.  

oIf the declared provision is not enacted, duties and taxes collected will be refunded in entirety.