New Delhi: Parliament on Wednesday passed the Provisional Collection of Taxes Bill, 2023, that gives statutory backing to the government to collect taxes from midnight as per the announcement made in the Union Budget.
The bill comes with provisions to refund taxes collected that have not been incorporated in the Finance Bill as per the budget for fiscal year starting April 1. It repeals The Provisional Collection of Taxes Act, 1931. Explaining the importance of the bill, Finance Minister Nirmala Sitharaman said after announcing various provisions around taxes in the budget, which is on February 1, the government has to wait till April 1 for them to become effective which leads to a gap between the two dates and can result in various kind of speculations, exploitations etc.
"So, we start the collection of taxes from the midnight of that day. Otherwise, the speculation can hurt the market," Sitharaman said. She said the bill has provision that the changes made in the taxes will have to be approved by Parliament within 75 days. "If that approval doesn't come, it (the bill) also tells you that you refund the money back," she said.
The finance minister said that there are no major changes in the law as it has existed since 1931. "It is part of a larger re-look at the bills so that any colonial past residues are in these acts, we want to remove them and make them reflective of modern India, the new India that we are trying to build," Sitharaman said. Seven members including BJD member Amar Patnaik, YSR Congress Party member Ayodhya Rami Raddy Alla, AIADMK member M Thambidurai, BJP members Ghanshyam Tiwari and K Laxman participated in the discussion on the bill.
