PIONEER INDUSTRIES (RELIEF FROM INCOME TAX) BILL

[Mr Speaker in the Chair]

Order for Committee stage read.

10.26 a.m.

Bill considered in Committee.

Clause 1 -

The Chairman: There is a note, in page 1, line 5, to leave out "1958" and insert "1959". That will be done.

Clause 1 ordered to stand part of the Bill.

Clauses 2 to 11 inclusive ordered to stand part of the Bill.

Clause 12 -

The Minister for Commerce and Industry (Mr J. M. Jumabhoy): Mr Speaker, Sir, I move,

In page 7, lines 10 and 11, to leave out "under the provisions of section 5 of this Ordinance".

Hon. Members will notice that in clause 3, the words "pioneer certificate" are defined already and therefore these words in this clause are not necessary.

Amendment agreed to

Clause 12, as amended, ordered to stand part of the Bill.

Clause 13 ordered to stand part of the Bill.

Clause 14 -

Mr J. M. Jumabhoy: Sir, I move,

In page 7, line 43, to leave out "14" and insert "13".

This is an error which has to be corrected.

Amendment agreed to.

Clause 14, as amended, ordered to stand part of the Bill.

Clauses 15 to 17 inclusive ordered to stand part of the Bill.

Clause 18 -

Mr J. M. Jumabhoy: Sir, I move,

In page 8, line 39, to leave out from "(2)" to the end of line 44 and insert-

"Where such account is in credit at the date on which any dividends are paid by the pioneer enterprise out of income which has been exempted an amount equal to such dividends or to such credit, whichever is the less, shall be debited to such account".

Sir, the purpose of this amendment is to reword the clause to cover the restriction over dividends payable by a pioneer industry arising out of the profits accrued to the industry as a result of engaging in the manufacture of the pioneer products - which restrictions were previously contained under clause 19.

Hon. Members will see later on in the Notice of Amendments that I propose to negative clause 19. It has been suggested that clause 19 is unduly restrictive and therefore the amendment to clause 18 to incorporate these words would be sufficient and the negating of clause 19 would remove the undue restrictions placed by that clause.

Amendment agreed to.

Mr J. M. Jumabhoy: Mr Speaker, Sir, I move,

In page 9, line 19, to leave out "foregoing".

This is a drafting amendment.

Amendment agreed to.

Mr J. M. Jumabhoy: Mr Speaker, Sir, I move,

In page 9, line 20, after "and", to insert "the foregoing provisions".

This again is a drafting amendment.

Amendment agreed to.

Mr J. M. Jumabhoy: Sir, I move,

In page 9, line 24, after "of", to insert-

"a direction under section 13 of this Ordinance having been made with respect to the pioneer enterprise, after any income of such enterprise has been exempted under the provisions of this Ordinance or".

The purpose of this amendment, Sir, is to provide for an adjustment of assessment of income tax after an amount has been credited to the special account, in accordance with clause 13. This gives the power to the Comptroller to do so.

Amendment agreed to.

Clause 18, as amended, ordered to stand part of the Bill.

Clause 19 -

Question proposed, "That clause 19 stand part of the Bill".

Mr J. M. Jumabhoy: Sir, in view of my earlier explanation, I propose to negative this clause.

Question put, and negatived.

Clause 19 accordingly disagreed to.

The Chairman: A consequential amendment will be made to re-number clause 20 to clause 19.

Bill reported with amendments; read the Third time and passed.