The changes were first announced last week by the Islamic-rooted government following deadly protests in Istanbul and the Kurdish-majority southeast over Turkey's Syria policy.
Davutoglu said the legislation is aimed at ending the ambiguity over the use in demonstrations of "weapons of violence", including Molotov cocktails, stones and other sharp objects.
Those protestors possessing such objects -- not currently regarded as a crime -- will be detected and banned from entering rallies.
"Molotov cocktails are weapons of violence. If someone sets fire to ambulances, libraries, mosques or koranic institutions by throwing Molotov cocktails... We cannot call this freedom," Davutoglu told a meeting of the ruling Justice and Development Party (AKP) in Ankara.
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He said the bill calls for stricter punishment for offenders wearing masks to conceal their identity, damaging public property, as well as resisting the police.
The detention time limit will be doubled to 48 hours, Davutoglu said.
"Calls for violence" through social media will also be recognised a crime, he said.
The legislation will make it easier for authorities to wiretap suspects and allow for these recordings to be used as evidence.
At least 34 people were killed and 360 wounded earlier this month when Kurds took to streets over Turkey's lack of support for the mainly-Kurdish Syrian border town of Kobane, which is under attack from Islamic State (IS) jihadists.
Over 1,000 people were detained for their involvement in the protests which caused damage to hundreds of public buildings.
A brutal police crackdown on anti-government protests in May-June 2013 left eight people dead and thousands injured.
The reform package has sparked outrage from the opposition, which said it would turn Turkey into a "police state" and threaten citizens' right to protest.