SINGAPORE BUS SERVICE LIMITED (Tax exemptions)

Encik Abdul Aziz Karim asked the Minister for Finance if the Singapore Bus Service (Private) Limited is given exemption or concession in respect of payment of any duty or tax; and what is the rationale of continuing this policy when it has failed to serve the public interest.

The Minister for Finance (Mr Hon Sui Sen): Mr Speaker, Sir, the Singapore l3us Service Ltd was given a waiver of the transfer fees on the buses which were re-registered following the amalgamation of the three Chinese bus companies. This waiver was also previously given to the three Chinese bus companies when they took over the buses of the former bus companies, including the Singapore Traction Company. The waiver was given because the amalgamation of the bus companies was being encouraged by Government for the purpose of reorganising and improving the public transport system.

Because of the urgent need to increase the number of buses on the roads, exemption from import duty was given to the Singapore Bus Service Ltd recently for the purchase of 19 assembled units of bus chassis. However, no waiver or reduction of additional registration fee has been given to any of the bus companies.

Since the various bus companies have already been amalgamated into the Singapore Bus Service Ltd. there should he no further occasion for re-registration of buses and hence for the payment o transfer fees. Nor should there be any need for future imports of fully assembled buses by this company. Completely knocked down or CKD packs do not attract import duty.

Encik Abdul Aziz: Mr Speaker, Sir, repair and maintenance bills are given tax allowance. As repair bills can be $1 and upwards, like any other professional bill, is it possible that excessive repair and maintenance bills cause leakages in the SBS finances?

Mr Speaker: Will the Member for Kallang please repeat his supplementary question?

Encik Abdul Aziz: Sir, I was saying that repair and maintenance bills are given tax allowance. My question is this. Is it possible for excessive repair and maintenance bills to cause leakages in the SBS finances, when it comes to taxation? Badly maintained vehicles require frequent repairs, and if SBS send their buses to disreputable firms for repairs, they are prone to over-charging. Would that cause less tax to be collected?

Mr Hon Sui Sen: Mr Speaker, Sir, I am not aware that excessive hills were paid. If the Member would please give me particulars of this information, I would get my tax people to look into whether there is an excessive deduction from income and tax for maintenance bills. I assume that they would themselves prefer to keep their profits as high as possible and keep the maintenance bills as low as possible.

Encik Abdul Aziz: Mr Speaker, Sir, does the Minister for Finance not think that it is the duty of the Income Tax Department to look into these matters whether or not there is information?

Mr Hon Sui Sen: Mr Speaker, Sir, we do not go on a fishing expedition unless we have some basis on which the expedition can be successfully conducted. But, as I say, if the Member would give me any particulars that he knows of, I will look into it.