INDUSTRIAL EXPANSION (RELIEF FROM INCOME TAX) BILL

Order for Committee stage read.

10.35 a.m.

Bill considered in Committee.

[Mr Speaker in the Chair]

Clause 1-

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

Clause 1 ordered to stand part of the Bill.

Clause 2 ordered to stand part of the Bill.

Clause 3-

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

In page 2, to leave out lines 8 to 11.

Sir, the intention is to restrict applications to companies already established in Singapore. Since a company incorporated outside Singapore and having business here must, according to the law here, register in Singapore, and this being already covered by paragraph (a), therefore paragraph (b) is redundant.

Amendment agreed to.

The Chairman: The consequential amendments* will be made as shown on the Supplementary Order Paper.

• The consequential amendments read as follows:

(1) In page 2, line 12: to leave out "(c)" and insert "(b)".

(2) In page 2, line 14: to leave out "(d)" and insert "(c)".

Clause 3, as amended, ordered to stand part of the Bill.

Clauses 4 to 12 inclusive ordered to stand part of the Bill.

Clause 13-

Question proposed, "That clause 13 stand part of the Bill".

Mr J. M. Jumabhoy: Sir, it is my intention to negative the inclusion of this clause. Hon. Members will notice that clause 2 relates the Bill to the. Income Tax Ordinance, and clause 12 in the Bill requires compliance with the Income Tax Ordinance in providing returns according to the requirements of the Income Tax Ordinance. Therefore, clause 13 is considered unnecessary.

Question put, and negatived.

Clause 13 accordingly disagreed to.

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

In page 5, line 34, at end, to add-

"(2) All regulations made under this section shall be published in the Gazette and shall be presented to the Legislative Assembly as soon as may be after publication and if a resolution is passed pursuant to a motion notice whereof has been given for a sitting day not later than the first available sitting day of the Assembly next after the expiry of one month from the date when such regulations are so presented annulling the regulations or any part thereof as from a specified date, such regulations or such part thereof, as the case may be, shall thereupon become void as from such date but without prejudice to the validity of anything previously done thereunder, or to the making of any new regulations.".

Sir, this sounds a rather complicated clause on reading it, but it is simple, Sir. It just gives the Assembly the power to rescind or alter any regulations made by the Minister and, therefore, it provides, in short, an appeal to the Assembly over the Minister when he makes regulations.

The Chairman: Before I put the Question, I think I heard the Minister saying "any new regulations" in reading the last line. Is the word "any" intended to be inserted?

Mr J. M. Jumabhoy: I am sorry, Sir, if I put in the word "any" when reading; it is not there in the amendment. It is not the intention to insert the word "any".

Amendment agreed to.

The Chairman: The consequential amendments* as shown, will be made.

*Note:-In page 5, line 30: after "14", to insert "-(1)".

Consequential amendment:

Re-number clause 14 as 13, consequential on the deletion of clause 13.

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

The Schedule-

Question proposed, "That the Schedule stand part of the Bill".

Mr J. M. Jumabhoy: Sir, it is my intention to negative the Question to include the present Schedule in the Bill and, after negativing it, I shall propose a new Schedule to be inserted in the Bill. May I have your permission to speak on the new Schedule now, Sir, or at a later stage?

The Chairman: Yes, now.

Mr J. M. Jumabhoy: It will be noticed, Sir, in the present Schedule that the first item shows where the value of the aggregate capital expenditure is $10,000, the tax concession is 10 per cent; whereas the next item shows that where the aggregate capital expenditure is $10,000 or above but less than $20,000, the tax concession is 11 per cent. Therefore, the first item, in fact, only applies to the exact figure of $10,000, which was not the intention. The intention was that the first item should read from $10,000 to $20,000; and therefore the new Schedule will provide for that by removing the first item entirely.

Mr Lee Kuan Yew (Tanjong Pagar): Mr Speaker, Sir, may I enquire from the Minister how hurriedly this Bill was drafted?

Mr J. M. Jumabhoy: Sir, the Bill has been given careful consideration but, as the hon. Member himself is aware, there are human failings sometimes and one overlooks certain things, and therefore one cannot overlook the human element in anything that is done by human beings.

Question put, and negatived.

The Schedule accordingly disagreed to.

NEW SCHEDULE- "THE SCHEDULE. (Section 10). PROPORTION OF ALLOWANCE TO BE MADE ON AGGREGATE NEW CAPITAL EXPENDITURE

Where the value of the aggregate 11 per cent annually for new capital expenditure is $10,000 five years from date of or above but less than $20,000. production. Where the value of the aggregate 12 per cent annually for new capital expenditure is $20,000 five years from date of or above but less than $30,000. production. Where the value of the aggregate 13 per cent annually for new capital expenditure is $30,000 five years from date of or above but less than $40,000. production. Where the value of the aggregate 14 per cent annually for new capital expenditure is $40,000 five years from date of or above but less than $50,000. production. Where the value of the aggregate 15 per cent annually for new capital expenditure is $50,000 five years from date of or above. production." [Mr J. M. Jumabhoy]

Brought up, and read the First time.

Mr J. M. Jumabhoy: Sir, I move, "That the Schedule be read a Second time."

I have already explained the purpose of the Schedule and I need not dwell on it any further.

Question put, and agreed to.

The Schedule read a Second time and added to the Bill.

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