ESTATE DUTY (AMENDMENT) BILL

[Mr Speaker in the Chair]

Order for Second Reading read.

The Minister for Finance (Mr Hon Sui Sen): Mr Speaker, Sir, I beg to move, "That the Bill be now read a Second time."

Honourable Members of the House will recall that in my Budget Speech early this year, among the tax concessions which I announced was one for the relief from estate duty by a combination of exemption and remission. The reasons for the relief were explained fully at that time and I do not, therefore, propose to repeat them here.

I need only say that this Bill seeks to provide the relief announced by amending the Estate Duty Act (Chapter 137 of the Revised Edition) to set higher limits of exemption of estate duty at $50,000 of the principal value of the estate passing on or after 1st April, 1974.

It is intended that a Remission Order will be made also to take effect on the same date, remitting estate duty at a progressively declining rate, by 10 per cent for every $20,000 in excess of the principal value of $50,000.

Clause 2 amends subsection (1) (g) of section 6 of the principal Act to provide for assessment of an estate passing on or after 9th August, 1965, and before 1st April, 1974, at the graduated scales set forth in the Fifth Schedule to the principal Act. It also adds a new subsection (1) (h) to provide for the assessment of an estate passing on or after 1st April, 1974, at the rates given in the Eighth Schedule to this Act.

Clause 3 makes an amendment to the Fifth Schedule so that in the case of an estate passing before 1st April, 1974, the estate duty rates given in this Schedule shall continue to apply.

Clause 4 introduces the new Eighth Schedule which provides for exemption of estate duty on the first $50,000 of the principal value of the estate.

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 Hon Sui Sen].

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