STAMP (AMENDMENT) BILL

Order for Second Reading read.

11.28 a.m.

The Financial Secretary (Mr T. M. Hart): Sir, I beg to move, "That the Bill be now read a Second time."

This Bill, Sir, seeks to provide for increase of duty on cheques from five cents to ten cents.

The opportunity has also been taken to make a consequential amendment to section 44 by the removal of the words "chargeable with the duty of four cents" which was the duty at one time in force on bills of exchange and cheques.

Sir, I mentioned in the course of my Budget speech that I was anxious to take this Bill through all its stages this morning. Sir, I beg to move.

Mr J. M. Jumabhoy: Sir, I beg to second.

Question proposed.

11.29 a.m.

Mr G. A. P. Sutherland (Nominated): Mr Speaker, Sir, I did not know that this Bill would come before me this morning, but as I am Chairman of the Malayan Exchange Banks Association I believe some of my colleagues will expect me to say something about it.

The House heard the remarks that the Hon. the Financial Secretary passed on it when the question of increasing the stamp duty on cheques was raised before and that there were protests from local bankers. Sir, there may be protests from certain bankers that the increased duty will reduce the number of accounts on their books. I shall not join in such protests.

As far as large companies using a great number of cheques are concerned, the increase can scarcely be of much importance and will be very easily absorbed. If the effect of the increased duty will be for small holders to reduce the number of cheques issued, then many bankers would thoroughly welcome such a state of affairs, and the Treasury would not suffer much from such reduction. Sir, I support the Bill.

Question put, and agreed to.

Bill accordingly read a Second time.