STAMP (AMENDMENT) BILL

[Mr Speaker in the Chair]

Order for Second Reading read.

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.".

At the outset, I wish to relieve the anxiety of Members by saying that this Bill does not intend to increase the rates of stamp duty on the heels of the last revision in January this year. It deals with some amendments to the provisions of the existing Ordinance.

Under the existing law, any change - however minor - to the rate of stamp duty can only be done by amending the Stamp Ordinance in Parliament. The experience of the last revision of stamp duties in December 1968 has proved this process to be cumbersome and unsatisfactory. Hon. Members will remember that the revision of the rates of stamp duty was announced by the Minister for Finance during his Budget Statement, but the revision could not be effected until January 1969, because of the need to amend the Stamp Ordinance. In the meantime, there was a rush to the Stamp Office as people tried to jump the gun by getting their documents stamped before the increased rates were effected. This resulted not only in a loss of revenue, but, also a congestion at the Stamp Office, which prompted an hon. Member to ask a question in Parliament.

In view of this experience, it is now proposed to add a new section to the Ordinance to enable the Minister to impose new duties or to revise the rates of existing ones by an Order to be published in the Gazette. This amendment will bring the Ordinance in line with the other revenue Ordinances, such as the Customs Ordinance.

Hon. Members will remember that in my answer to the question on the congestion at the Stamp Office, I said that the Government was looking into the question of allowing more documents to be stamped by franking machines so as to relieve the pressure at the counter of the Stamp Office. I am happy to say that the Government has now decided to allow insurance policies and contract notes to be stamped by postal franking machines. Clause 2 of the Bill seeks to effect this. At the same time, power will be given to the Minister to extend the number of instruments on which duty may be paid by franking machines.

As the fee for a Certificate to Practise for an advocate and solicitor has been specifically provided in the Legal Profession Act, this duty will be removed from the Stamp Ordinance. This is stated in clause 14 (b) of the Bill.

The Bill also seeks to clarify the position of stamp duty in relation to receipts, letters of guarantee, payment of stamp duties on shares, by removing the ambiguities. The other minor amendments include deletion of rates from the main body of the Ordinance, renumbering of various articles, and consequential changes to the Schedules of the Ordinance.

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.