CORPORATION DUTY (REPEAL) BILL

Order for Second Reading read.

3.20 p.m.

The Parliamentary Secretary to the Minister for Finance (Mr S. Ramaswamy) (for the Minister for Finance): Mr Speaker. Sir, I beg to move, "That the Bill be now read a Second time."

The Bill now before Parliament seeks to abolish the Corporation Duty Ordinance which was enacted 62 years ago for the imposition of a corporaton duty of three per cent on all the movable and immovable properties corporate and unincorporate in Singapore. This duty, which applies to trusts and similar types of bodies where property is held permanently in such manner that no tax is payable since no property ever passes on on the death of a person, was originally complementary to estate duty which provided for a levy in respect of the estate of deceased persons only.

As the law stands, it covers movable or immovable property in Singapore and outside Singapore, whereas in the case of estate duty the scope of the charge specifically excludes immovable property outside Singapore. The revenue collection from this duty in 1966 was $55,954.68, and in 1967 (up to November 1967) was $55,706.45. This collection is not substantial taking into consideration the cost involved. It is now proposed to repeal the Corporation Duty Ordinance because the exemptions provided in the law are such that a very small class of property is liable to charge. Property of religious and charitable organisations and property constituting the capital of a body corporate or unincorporate for trade or business are exempt. Thus only a very small number of properties which do not pass on on death are subject to charge. Consequently, it is not productive of any substantial amount of revenue, as is clear from the figures given earlier. Similar legislation in Malaysia was repealed in 1947.

Sir, I beg to move.

Question put, and agreed to.

Bill accordingly read a Second time and committed to a Committee of the whole House.

The House immediately resolved itself into a Committee on the Bill. - [Mr Ramaswamy].

Bill considered in Committee.

[Mr Speaker in the Chair]

3.23 p.m.

Clause 1 -

The Chairman: There is an amendment to be made - in page 1, line 4, the year "1967" should now read "1968".

Clause 1 ordered to stand part of the Bill.

Clauses 2 and 3 ordered to stand part of the Bill.

Bill reported without amendment; read a Third time and passed.