CINEMATOGRAPH FILM HIRE DUTY (AMENDMENT) BILL

Order for Second Reading read.

3.13 p.m.

The Parliamentary Secretary to the Minister for Finance (Mr Tang See Chim) (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 proposes two amendments to the Cinematograph Film Hire Duty Act, 1966. An amendment to section 10 to limit the amount of gross receipts which may be deducted by a film renter for the purposes of film hire duty assessment, and the other is an amendment to section 16 to enable senior officers of Customs to compound offences under the Act where the amount involved does not exceed $100.

Film hire duty is assessed at 60 per cent of the gross receipts of a renter derived from the renting of films. For the purpose of duty assessment, a film renter is allowed to deduct from the gross receipts, proceeds derived from the sale or hire of advertising materials or accessories used in connection with the distribution or hire of films. There have been instances of renters deducting unreasonably large amounts in this respect, thus reducing the amount assessable for duty. As a remedy to such abuse, the amendment to section 10 of the Act limits such deductible amounts to 10 per cent of the gross receipts or $50, whichever is the lesser.

At present, senior officers of Customs are empowered to conduct court prosecutions on behalf of the Comptroller of Customs and Excise for offences under the Act. Experience has shown that it is desirable to provide powers for such officers to compound offences involving sums of less than $100 to avoid taking cases to the court. This is effected by the proposed amendment to section 16 of the Act.

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 Tang See Chim].

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