ENTERTAINMENTS DUTY ORDINANCE (Imposition of Entertainments Duty)

11.20 a.m.

The Acting Financial Secretary (Mr Oon Khye Kiang): Mr Speaker, Sir, I have the Governor's consent to proceed with the motion. I beg to move,

That this Assembly pursuant to the provisions of subsection (1) of section 4 of the Entertainments Duty Ordinance (Chapter 161) resolves that there shall be imposed upon every payment set out in the First Column of the Schedule hereto for admission to any entertainment, including admission to an amusement park, entertainments duty at the rate set out opposite thereto in the Second Column of the said Schedule. THE SCHEDULE First Column Second Column Where the payment for admission Entertainments inclusive of Entertainments Duty Duty does not exceed 10 cents None exceeds 10 cents but does not exceed 20 cents 05 cents exceeds 20 cents but does not exceed 30 cents 10 cents exceeds 30 cents but does not exceed 50 cents 15 cents exceeds 50 cents but does not exceed $1 25 cents exceeds $1 but does not exceed $1.50 40 cents and thereafter an additional 20 cents of entertainments duty for every increase of 50 cents or part thereof in the payment for admission inclusive of Entertainments Duty.

Sir, hon. Members will recollect that in moving a proposed amendment to section 4 of the Entertainments Duty Ordinance early this morning, I referred to a resolution passed by the former Legislative Council in 1951 under section 4 (1) levying half-duty in respect of live entertainment. As this provision has now been incorporated in the substantive law, it will be necessary to move an amended resolution to refer to only the other types of entertainment on which the full existing rates of duty are payable. The opportunity is also taken to clarify the position of the liability of the "Worlds" to full duty. There is no change at all to the existing rates. This resolution will come into operation on the same date as the Ordinance. Sir, I beg to move.

Mr Nair: I rise to second the motion.

Question proposed.

Mr Lee Kuan Yew: Sir, there are two points arising from this motion on which I seek clarification. First, how much revenue is expected to result from this amendment; and second, what other forms of entertainment or amusement are intended to be covered by this new Schedule besides amusement parks? The purpose of exempting entertainment duty on cheap live entertainment is well understood. I can understand the Government wishing to go behind that raison d'etre and trying to bring the amusement parks within the province of the Entertainments Duty Ordinance. But I am not able to understand what other forms of amusement or entertainment that could conceivably be cheap and could be under a dollar, and yet be worthy of putting a tax on.

Mr R. Jumabhoy: Sir, one point I would like to raise is this. The Government, because of unnecessary heavy expenditure, has indirectly taxed the public in one way or the other to raise revenue. Instead of lightening the burden of the poor masses, one excuse or another is given to raise taxes. The burden on the poor taxpayers is increasing. It is not right that if the amount of money to be raised is very big the poor should be made to pay more. Sir, they will say that this will be collected from the admission fees. But if the taxation is lower, will not the poor masses pay less for their entertainment?

The Chief Minister: Mr Speaker, Sir, as the time for general election approaches, politicians have a tendency to forget or understand what is being introduced in this House. They try to make political capital out of every move that the Government makes. On the Second Reading of the Bill, it was pointed out that the purpose of amending the Entertainments Duty Ordinance is just to tighten up the Ordinance to see that the loopholes are properly blocked. There is no change whatsoever in the rate of entertainment duty that is to be levied under this motion, as has been levied for many years. But there is just one significant change. In the case of open-air cinemas, the entertainment tax is now reduced to half; that is to say, the operators of open-air cinemas need not have to pay the same rates of tax as first-class cinemas and other covered cinemas. In the case of amusement parks, they have already been paying entertainment duty, and the amendment is to ensure that they have to pay the full entertainment duty and not half.

Mr R. Jumabhoy: Can I speak on that, Sir?

Mr Speaker: The hon. Member has spoken.

Question put, and agreed to.

Resolved,

That this Assembly pursuant to the provisions of subsection (1) of section 4 of the Entertainments Duty Ordinance (Chapter 161) resolves that there shall be imposed upon every payment set out in the First Column of the Schedule hereto for admission to any entertainment, including admission to an amusement park, entertainment duty at the rate set out opposite thereto in the Second Column of the said Schedule. THE SCHEDULE First Column Second Column Where the payment for admission Entertainments inclusive of Entertainments Duty Duty does not exceed 10 cents None exceeds 10 cents but does not exceed 20 cents 05 cents exceeds 20 cents but does not exceed 30 cents 10 cents exceeds 30 cents but does not exceed 50 cents 15 cents exceeds 50 cents but does not exceed $1 25 cents exceeds $1 but does not exceed $1.50 40 cents and thereafter an additional 20 cents of entertainments duty for every increase of 50 cents or part thereof in the payment for admission inclusive of Entertainments Duty.