FOREIGN
EXCHANGE CONSERVATION (TRAVEL) TAX ABOLITION ACT, 1992 [REPEALED] THE FOREIGN EXCHANGE CONSERVATION (TRAVEL) TAX ABOLITION ACT, 1992 [Act No. 28 of 1992] [18th August, 1992] An Act further to amend the Finance Act, 1987. Be it enacted by Parliament
in the Forty-third Year of the Republic of India as follows:-- (1)
This Act may be called the Foreign Exchange Conservation (Travel)
Tax Abolition Act, 1992. (2)
It shall be deemed to have come into force on the 1st day of June,
1992. Chapter V of the Finance
Act, 1987(11 of 1987.) (hereinafter referred to as the principal Act), relating
to the Foreign Exchange Conservation (Travel) Tax, shall be omitted. (2) ??Notwithstanding such repeal, anything done or
any action taken under the principal Act, as amended by the said Ordinance,
shall be deemed to have been done or taken under the principal Act, as amended
by this Act. Statement
of Objects and Reasons - FOREIGN EXCHANGE CONSERVATION (TRAVEL) TAX ABOLITION
ACT, 1992 STATEMENT OF OBJECTS AND REASONS 1.
The Government had been receiving representations from time to
time for abolition of, or exemption from, the Foreign Exchange Conservation
(Travel) Tax in respect of foreign exchange releases for travel abroad under
various schemes like the Returning Indians Foreign Exchange Entitlement Scheme,
etc., as it added to the cost of acquisition of foreign exchange significantly
after devaluation of the rupee. Further, with the introduction of partial
convertibility of the rupee and the Liberalised Exchange Rate Management
System, foreign exchange for travel abroad is now required to be purchased at
the market rate and the levy of 15 per cent. on foreign exchange so obtained
made the effective cost of the foreign exchange quite high. It is, therefore,
felt that since foreign exchange for foreign travel is being made available at
market rate, there is no need for continuing the Foreign Exchange Conservation
(Travel) Tax. Government, therefore, decided to abolish the levy of 15 per
cent. on foreign exchange released in connection with all types of travel
abroad with effect from 1st June, 1992. As the Parliament was not in session,
the President promulgated the Foreign Exchange Conservation (Travel) Tax
Abolition Ordinance, 1992 on 29th May, 1992 for this purpose. 2.
The Bill seeks to replace the said Ordinance.
Preamble - THE FOREIGN EXCHANGE CONSERVATION (TRAVEL) TAX
ABOLITION ACT, 1992PREAMBLE
(1) ??The Foreign Exchange Conservation (Travel)
Tax Abolition Ordinance, 1992(Ord. 8 of 1992.) is hereby repealed.