Parliament on Wednesday passed the Provisional Collection of Taxes Bill, 2023, paving the way for provisionally effect changes in customs and excise duties announced in the Budget from midnight.

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The bill comes with a provision to refund taxes collected that have not been incorporated in the Finance Bill.

It repeals The Provisional Collection of Taxes Act, 1931.

While moving the bill for passage on Tuesday, Finance Minister Nirmala Sitharaman said the bill sought to obtain the authority from Parliament to provisionally levy and collect the newly imposed or increased duties of customs and excise for 75 days.

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.