The Provisional collection of Taxes Act,2023
Administered Ministry: Ministry of Law and Justice / Legislative Department
Act details
| Short title | The Provisional collection of Taxes Act,2023 |
|---|---|
| Long title | An Act 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. |
| Act number | 50 of 2023 |
| Act year | 2023 |
| Enactment date | 28 Dec 2023 |
| Ministry | Ministry of Law and Justice / Legislative Department |
| Department | Legislative Department |
| Jurisdiction | Central (Parliament of India) |
| Sections | 6 |
| Status | Not repealed |
| Last checked on India Code | 28 Oct 2026 |
| Source | India Code, Government of India |
Summary
Summary of Provisional Collection of Taxes Act, 2023
The Provisional Collection of Taxes Act, 2023, enables the Central Government to immediately impose or increase customs or excise duties through a declaration in a Bill, effective for a limited period until the Bill's enactment, amendment, rejection, or expiration of a specified period.
Key Provisions
1. Immediate Effect
Declared provisions in a Bill come into force the day after introduction.
2. Duration
Until the Bill is enacted (with/without amendments), notified to cease by the Central Government, or 75 days after introduction, whichever is earlier.
3. Refunds
Enacted in Amended Form Before 75 Days: Refunds for excess duties based on rate differences. Declaration Ceases Otherwise: Full refund of duties collected under the declaration.
Repeals the Provisional Collection of Taxes Act, 1931
Legislative history
Legislative History:
The Provisional Collection of Taxes Act, 2023
Source: Official Record of Parliament, India Code, and Ministry of Law & Justice
Act Title - The Provisional Collection of Taxes Act, 2023
Act Number - Act No. 50 of 2023
Act ID (India Code) - 202350
Presidential Assent date - December 28, 2023
Enforcement Date - December 28, 2023
Nodal Ministry - Ministry of Law & Justice
Precedent & Historical Rationale
● Repeal of the Provisional Collection of Taxes Act, 1931: Repeals the colonial-era Provisional Collection of Taxes Act, 1931 (16 of 1931) to modernize statutory language and update procedure for statutory tax declarations.
● Immediate Effect for Tax Provisions in Bills: Mandates that declared provisions in Bills introduced in Parliament regarding customs or excise duties take immediate temporary effect upon introduction, ensuring statutory protection against speculative trade stockpiling ahead of Finance Bill enactment.
Parliamentary Trajectory & Enactment
● Formulation: Introduced by the Union Minister of Finance, Smt. Nirmala Sitharaman, as part of legislative measures to replace redundant colonial financial laws.
● Parliamentary Passage: Introduced in the Lok Sabha on December 13, 2023; passed by the Lok Sabha on December 19, 2023; and passed by the Rajya Sabha on December 20, 2023.
● Presidential Assent: Received the assent of the President of India on December 28, 2023.
● Enforcement: Enforced on December 28, 2023.