INCOME TAX ORDINANCE (Addition to First Schedule)

3.40 p.m.

The Minister for Finance (Dr Goh Keng Swee): Mr Speaker, Sir, I beg to move,

That this Assembly, pursuant to subsection (I) of section 106 of the Income Tax Ordinance (Cap. 166), resolves that the South Indian Labour Fund, Federation of Malaya, be added to the First Schedule to the said Ordinance with effect from the 1st day of September, 1958.

An application has been received for the exemption of the South Indian Labour Fund from income under section 13 (1) (e) of the Income Tax Ordinance by inclusion of the Fund in the First Schedule to the Ordinance.

This Fund has been established by the Federation Government under the South Indian Labour Fund Ordinance, 1958, to replace the Indian Immigration Funds, which have been wound up by enactment. The resources of the Fund will consist initially of sums paid over from the Indian Immigration Funds when they are wound up. The Fund will be disbursed for the repatriation of and assistance to Indian labourers and their dependants or orphans, and for any other purposes beneficial to South Indian labourers.

The Malayan Board of Income Tax has considered this case and recommends that the South Indian Labour Fund of the Federation of Malaya may properly be included in the First Schedule to the Income Tax Ordinance with effect from the 1st of September 1958, and the Government accepts the recommendation of the Board.

Section 106 of the Income Tax Ordinance gives power to the Legislative Assembly by resolution to add to therein or revoke the whole or part of any Schedule to the Ordinance. The First Schedule specifies institutions, authorities, persons or funds whose income is exempted from income tax under section 13 (1) (e) of the Income Tax Ordinance.

Sir, I beg to move.

Question put, and agreed to.

Resolved,

That this Assembly, pursuant to subsection (1) of section 106 of the Income Tax Ordinance (Cap. 166), resolves that the South Indian Labour Fund, Federation of Malaya, be added to the First Schedule to the said Ordinance with effect from the 1st day of September, 1958.