Provisional Collection of Taxes Act 1968 section 4

Customs and excise: alteration of rate of drawback where rate of duty altered by resolution having statutory effect

Section 4 deals with the temporary adjustment of drawback rates when the House of Commons passes a resolution changing a rate of excise duty, and the accompanying Bill also proposes a change to the related drawback rate.

• When a House of Commons resolution with statutory effect changes an excise duty rate, and the related Bill proposes a new drawback rate, the new drawback rate takes immediate provisional effect.
• The provisional drawback rate applies for as long as the underlying resolution continues to have statutory effect.
• If Parliament ultimately enacts a different drawback rate from that proposed in the Bill, any necessary adjustments must be made retrospectively.
• This ensures that drawback rates are kept in step with duty rates during the provisional period before the Finance Bill receives Royal Assent.

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