Cabinet wide manipulation of tax rates and ranges; Implementation from midnight

The government has made extensive changes in the rates and scope of taxes. The Cabinet meeting has decided to change the tax rates with effect from midnight today. Based on the proposal submitted by the Ministry of Finance, the meeting of the Council of Ministers held on Friday has implemented the said decision. In addition to approving the budget for the upcoming financial year 2083/84, the Cabinet meeting presided over by the Prime Minister also approved the tax rates applicable from midnight as per the Occasional Tax Collection Act of 2012. This decision of the Council of Ministers is considered as a 'notified order'.

As per the provision in Section 3 of the Occasional Tax Collection Act, it is customary for the Government to issue such notified orders whenever it decides to levy or increase the tax. According to this provision, the rate of customs duty, excise duty or any other tax can be modified. The notified order so issued shall generally be applicable for a period of six months. There is a provision that the Council of Ministers can issue an informed order specifying the effective date for changing the tax rate. In this regard, the tax rates mentioned in the Finance Bill will come into effect from midnight on the day of the budget speech. However, the tax so imposed shall remain in force for six months or until it becomes inoperative by law or repealed by the Government. This notified order issued by the Council of Ministers shall be valid only till the Finance Bill is enacted into law. However, this notified order will not cover all the provisions of the Finance Bill. The rates of tax applicable from midnight today are only those revised in the notified order.