CUSTOMS (DUTIES) ORDER, 1957

5.15 p.m.

The Financial Secretary (Mr T. M. Hart): Sir, I have His Excellency the Governor's authority to move, That this Assembly, pursuant to subsection (2) of section II of the Customs Ordinance 20th December,1957 (5th Allotted Day) (Chapter 160 of the Revised Edition), resolves that the Customs (Duties) Order, 1957, published as Notification No. S 328 in Gazette Supplement No. 87 of 4th December, 1957, as contained in Sessional Paper No. S.L. 27 of 1957, be confirmed.

Sir, this motion refers to the Customs Order which was published in connection with the change in duty on petrol. The only alteration to the Customs tariff contained in the Schedule to the Paper is that there is a change in respect of petrol duty from 80 cents to $1. The reasons for the change have been fully explained and discussed in the course of today's debate, Sir, and I will do nothing more than beg to move.

Mr Speaker: I take it that the Sessional Paper is correct because on page 3 there appears to me to be some alteration in the Second Schedule. I trust that the Sessional Paper has been correctly produced. Item (c) (ii) reads:

"Manufactured tobacco (excluding cigars, cigarettes and Snuff)

(ii) imported otherwise than in containers of any kind for retail sale to the public per pound $2.50",

as against, I think, formerly, $4.50 and there also appears to be a reduction in item (d) on the same page.

Mr Hart: I beg your pardon, Sir, but I am firmly convinced that there is no change in the tariff other than the change in petrol duty.

Mr Speaker: All that I want to be quite convinced about is that Sessional Paper No. S.L. 27 of 1957 is properly produced and that there is no error in it.

Mr Hart: I do not think so, Sir.

Mr Braga: I second the motion.

Question put, and agreed to.

Resolved,

That this Assembly, pursuant to subsection (2) of section 11 of the Customs Ordinance (Chapter 160 of the Revised Edition), resolves that the Customs (Duties) Order, 1957, published as Notification No. 5 328 in Gazette Supplement No. 87 of 4th December, 1957, as contained in Sessional Paper No. S.L. 27 of 1957, be confirmed.

5.18 p.m.

The Financial Secretary (Mr T. M. Hart): Sir, I have His Excellency the Governor's authority to move,

That this Assembly resolves theat the scales of the special tax leviable under subsection (2) of section 16 of the Customs Ordinace (Chapter 160 of the REvised Edition) on motor vehicles which are equipped with engines using heavy oil or diesel oil as fuel or fitted with producer gas attachments shall, with effect from the 1st day of Junuary, 1958, be the scales set out in the Schedule hereto in lieu of those prescribed by the resoultion of the Legislative Assembly on the 29th day of June, 1955, published as Notification No. S 202 in Gazette Supplement No. 59 of 22nd July, 1955:- Special Tax on Disel Engined Vehicles(Cols 2991-2992)

Inche Abdul Hamid: I second the motion.

Question proposed.

5.20 p.m.

Mr Lim Choon Mong: Mr Speaker, Sir, on this increase of tax on diesel engines, I want an assurance from the Government that, since omnibuses and most passengers buses use diesel engines, this increase in taxation will not increase the fares of buses. If it does, it will again be a tax on the bus-users and not a tax on the bus-owners. I want the Governemnt to give an assurance that there is not going to be any increase in bus fares.

Mr Francis Thomas: Mr Speaker, Sir, I did refer to this during the debate on the Budget. I then made incidentally a number of remarks about diesel and petrol costs. Diesel-engined buses amount to about two-thirds of the 1,100 or so buses in Singapore. They have had a marked advantage in the past because the amount of tax actually paid by the petrol bus was considerably higher. There still remains a very wide margin between the diesel and the petrol bus even after this new tax. I have the figures available if the hon. Member wishes to have them. I do not think that there is any particular reason to expect that this tax would push up the fares nor of course is it a matter on which the Government has to make a decision. The rates of fares is a local government decision and it will be in the hands of the new City Council. If the bus operators sought to apply for a rise in fares, then the new local government authorities, when they are all in existence, will have to make the decision.

Question put, and agreed to.

Resolved,

That this Assembly resolves that the scales of the special tax leviable under subsection (2) of section 16 of the Customs Ordinance (Chapter 160 of the Revised Edition) on motor vehicles which are equipped with engines using heavy oil or diesel oil as fuel or fitted with producer gas attachments shall, with effect from the 1st day of January, 1958, be the scales set out in the Schedule hreto in lieu of those prescribed by the resolution of the Legislative Assembly on the 29th day of June, 1955, published as Notification No. S 202 in Gazette Supplement No. 59 of 22nd July, 1955:- SCHEDULE(Cols 2994-2994)