INCOME TAX ORDINANCE (SECOND SCHEDULE)

4.50 p.m.

The Minister for Finance (Dr Goh Keng Swee): Mr Speaker, Sir, I have His Excellency the Yang di-Pertuan Negara's recommendation and move,

That this Assembly, pursuant to subsection (1) of section 106 of the Income Tax Ordinance (Chapter 166), resolves that the Second Schedule to the said Ordinance be varied by substituting therefor the following Schedule with effect from the 1st day of January, 1961:- SECOND SCHEDULE (Section 42) Chargeable Income $ Rate of Tax per cent For every dollar of the first 1,500 5 " " " " " next 500 6 " " " " " " 1,000 7 " " " " " " 1,000 8 " " " " " " 1,000 10 " " " " " " 2,000 12 " " " " " " 3,000 15 " " " " " " 5,000 18 " " " " " " 10,000 25 " " " " " " 10,000 30 " " " " " " 15,000 40 " " " " " " 50,000 50 " " " exceeding 100,000 55

Sir, the object of this motion is to give effect to the proposal to raise the maximum rate of income tax from 50 to 55 per cent on income above $100,000 a year, as announced earlier in my Budget Statement on 29th November, 1960.

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 (Chapter 166), resolves that the Second Schedule to the said Ordinance be varied by substituting therefor the following Schedule with effect from the 1st day of January, 1961: - SECOND SCHEDULE (Section 42) Chargeable Income $ Rate of Tax per cent For every dollar of the first 1,500 5 " " " " " next 500 6 " " " " " " 1,000 7 " " " " " " 1,000 8 " " " " " " 1,000 10 " " " " " " 2,000 12 " " " " " " 3,000 15 " " " " " " 5,000 18 " " " " " " 10,000 25 " " " " " " 15,000 40 " " " " " " 50,000 50 " " " exceeding 100,000 55