TOURIST PROMOTION (CESS COLLECTION) BILL

Order for Second Reading read.

6.45 p.m.

The Minister of State for Finance (Mr Tang See Chim): Mr Speaker, Sir, I beg to move, "That the Bill be now read a Second time."

The Singapore Tourist Promotion Board commenced collection of cess horn hotels in January 1964, and from tourist public houses and food establishments in March 1970, following the necessary amendments to the Tourist Promotion Board Act. The collection of cess is currently being undertaken by the Department of Customs and Excise on behalf of the Board, in accordance with the Regulations established under the Act. With the passing of time, it has been found necessary to introduce various amendments to the Act to prevent tax evasion and unauthorised collection of cess, as well as to enable the process of cess collection to be undertaken more effectively.

To this end, it is proposed to incorporate within a single Bill all legislation pertaining to the imposition and collection of cess which will also repeal the existing provisions on cess in the Tourist Promotion Board Act.

There will be no change in the rate of cess levied. This will remain at 3 per cent. However, instead of imposing the cess only on the sale of food and drinks in tourist establishments, as provided in the Tourist Promotion Board Act, this Bill seeks to widen the scope of the cess so as to cover sales and charges levied or collected by all tourist food establishments and by tourist public houses. This is thought to be fair and reasonable because many of these establishments benefit from tourists visiting Singapore but are not contributing to the upkeep of the Singapore Tourist Promotion Board and its promotional efforts. This amendment would bring in additional income to the Tourist Promotion Board to supplement its promotional efforts, and it is also expected to facilitate the present administration of the tax itself.

There are also provisions in the Bill to enable tourist establishments required to pay cess to recover from their customers the cess payable. Customers are, however, protected under the Bill from payment of cess to unauthorised establishments. Other new provisions in the Bill enable the Tourist Promotion Board to recover cess due to it on the basis of an estimate made by the Board, and to sue for cess outstanding by way of a specially endorsed writ of summons. Where legal proceedings are instituted by the Board, it is entitled to all costs allowed by law against the person liable. Cess owing to the Board shall rank first in priority to all other debts in any bankruptcy proceedings or in the distribution of the property of a person dying insolvent. Also, persons who attempt to evade cess are liable on conviction to heavy fines and/or imprisonment. The Bill also provides for the prosecution of any offence under the Act to be conducted by officers of the Board or the Government with the sanction of the Public Prosecutor. These new provisions in the Bill are considered necessary to enable the Board to collect cess more effectively.

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.

[Mr Speaker in the Chair]

6.50 p.m.

Clause 1 -

The Chairman: The citation year "1971", appearing in page 1, line 4, is to be altered to "1972". This will be done.

Clause 1 ordered to stand part of the

Clauses 2 to 28 inclusive ordered to stand part of the Bill.

First and Second Schedules ordered to stand part of the Bill.

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