ESTATE DUTY (ABOLITION) BILL

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ESTATE DUTY (ABOLITION) BILL: Order for Second Reading read.

3.30 pm

The Senior Minister of State for Finance (Mrs Lim Hwee Hua): Mr Speaker, Sir, I beg to move, "That the Bill be now read a Second time."

The Bill seeks to amend the Estate Duty Act so that deaths occurring on and after 15th February 2008 will no longer be subject to Estate Duty. This change was earlier announced in the 2008 Budget Statement. Deaths occurring before 15th February 2008 will continue to be liable for Estate Duty.

We decided to abolish Estate Duty to send a clear signal of encouragement for individuals to take risks, invest and grow their wealth in Singapore. This wealth creation will benefit our whole economy and society, not just the individuals concerned. The revenues lost each year from collection of estate duties should be more than offset by the economic benefits over the long term.

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Sir, clauses 2 to 4 state that the provisions of the Estate Duty Act will only apply to deaths occurring before 15th February 2008.

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Sir, I beg to move.

Question put, and agreed to.

Bill accordingly read a Second time and committed to a Committee of the whole House.

The House immediately resolved itself into a Committee on the Bill. – [Mrs Lim Hwee Hua].

Bill considered in Committee; reported without amendment; read a Third time and passed.