CINEMATOGRAPH FILM HIRE DUTY (AMENDMENT) BILL

Order for Second Reading read. 4.16 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."

The purpose of amending the Cinematograph Film Hire Duty Act is principally to strengthen enforcement.

The major amendments are to sections 9, 10 and 13. The amendment to section 9 will enable the rate of film hire to be varied by Ministerial Order, so that changes in the film hire duty rate can be implemented quickly.

Section 10, which deals with the calculation of the assessment of gross receipts derived from the renting of films, is amended to limit the amount of deductible house expenses to 25% of the receipts from the admission charges, excluding entertainments duty. Presently, collections on film hire duty are depressed because of large deductions for house expenses. The amendment will ensure that the rental from the renting of films, on which film hire duty is payable, is not less than 65% of the taxable gross receipts after allowing a further 10% for the exhibitor.

The amendment to section 13 provides that exhibitors, proprietors of cinemas and renters will have to obtain Ministerial approval before imposing or varying the admission charges. The aim is to see that admission charges have some relation to facilities provided and types of films shown.

There are also five other minor amendments to the Act. Section 8 is being amended to empower the Director-General to inspect the contract documents without having to seek the consent of the Minister. It also provides for the penalty to be increased to $2,000.

A new section 14A makes it an offence for a person to fraudulently evade film hire duty, and imposes a penalty of imprisonment for a period not exceeding two years or a fine not exceeding $5,000, or to both imprisonment and fine.

Another minor amendment is to section 17. The amendment will empower any authorised senior officer of customs to compound certain offences under the Act and its rules for a sum not exceeding $500.

The remaining amendments to sections 2 and 5 are consequential in nature, in line with the recent amendments to the related Acts.

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.