Finance minister Nirmala Sitharaman on Wednesday introduced a bill in the Lok Sabha, which seeks to give immediate effect to the changes in customs and excise duties announced in the budget, days after stating that the upcoming interim budget on February 1 will just be a vote on account with no spectacular announcements.

Sitharaman, while introducing the Provisional Collection of Taxes Bill, 2023, said the provisions are curbing speculative activities following changes in customs and excise duties in the budget.

The bill, however, does not confine itself to the changes announced in the budget, though such changes are done in budget presentation.

While the changes in rates of income and corporate taxes, incorporated in the budget announced on February 1, are effective from April 1 or a notified date, most of the changes in customs and excise duty rates become effective from midnight. The Provisional Collection of Taxes Bill 2023 will replace the The Provisional Collection of Taxes Act, 1931.

The bill provides for the “immediate effect for a limited period” of provisions in bills relating to the imposition or increase of duties of customs or excise.