RUBBER ESTATES ASSESSMENT (REPEAL) BILL

Order for Second Reading read.

5.32 p.m.

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

This Bill proposes to repeal the Rubber Estates Assessment Act (Chapter 145) and the Rubber Estates (Surcharge on Assessment) Act (Chapter 146) and to tax all rubber estates under the Property Tax Act (Chapter 144) and the Property Tax (Surcharge) Act, 1974, with effect from 1st January, 1976.

The assessment of rubber estates is a relic of the past. In the present circumstances, it would not be appropriate to perpetuate the practice of charging rubber estate assessment according to yield, particularly when this is less than what is payable as property tax. Moreover, all other land in Singapore is subject to property tax.

The proposed measure would achieve equitable tax treatment on all land. There would be no adverse effect on the economy as the production of natural rubber in Singapore is on the decline and is rather insignificant.

Clause 4 enables the Chief Assessor to amend, as soon as possible, the Valuation List to include rubber estates.

Clause 5 provides that any outstanding liability or any legal proceedings in respect of such liability shall not be affected by the repeal of these enactments.

Clause 6 is a transitional provision. Owners of rubber estates are allowed to continue paying taxes levied under the repealed enactments. Such payment of assessment shall be deemed as property tax. When the Valuation List is authenticated, the Comptroller of Property Tax shall make the necessary adjustment of property tax payable on the rubber estates with effect from 1st January, 1976. This may result in owners having to pay more taxes or to claim refund of excess taxes paid, as the case may be.

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.