ESTATE DUTY (AMENDMENT) BILL

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."

This Estate Duty (Amendment) Bill is necessary to give legislative authority to the estate duty concession given in the 1979 Budget and subsequently enlarged to extend to more than one house. The Bill also incorporates a minor amendment.

In the 1979 Budget statement, it was announced that specific exemption of estate duty would be granted for any one house in a deceased's estate, subject to a maximum value of $200,000, to encourage home ownership and relieve the hardship of individuals most affected by the escalation in property prices. This concession was in addition to the existing exemption limit of $100,000 which would apply to properties other than dwelling-houses.

The concession is now being extended to more than one dwelling-house in a deceased's estate, subject to the same ceiling of $200,000. The exemption limit of $200,000 will be granted irrespective of the form of ownership and is limited to the share of the value of the houses. The concession, which is effective from 1st April, 1979, applies only to dwelling-houses and excludes houses which are inter vivos gifts made within five years of the date of death. All other property will continue to be exempt from estate duty to the extent of $100,000. Clause 4 of the Bill incorporates the concession by enacting a now section 1 0C to the Estate Duty Act.

Clauses 2, 3, 6, 7 and 8 make consequential amendments to sections 6 and 6A of, and the Ninth and Eleventh Schedules to, the Act as a result of the new section 10A of the Act providing for relief from estate duty of $200,000 in respect of dwelling-houses in the case of a person dying on or after 1st April, 1979.

Clause 5 enacts a new section 46A to the Act, empowering the Commissioner of Estate Duties to waive the payment of estate duty and interest on late payment of duty where the duty and interest payable is less than ten and five dollars, respectively.

Sir, I beg to move.

Question proposed.

Dr Augustine Tan: Mr Speaker, Sir, when this concession was given last year, that is, raising the exemption limit on dwelling houses to $200,000, I thought that was appropriate and timely. It was a good concession. But in view of the fact that since April last year property prices in Singapore have risen further and very considerably - even the Housing and Development Board is considering raising its property prices - and since the Hon. Minister for Finance is very generous in accommodating inflation, as he was earlier in respect of capital allowance for motor vehicles for business firms, would he be as generous in raising this exemption limit further to, say, $300,000?

Mr Hon Sui Sen: Sir, the Member has already debated the Budget for 1980 and so he would have known that there was no such extension of this concession for 1980. Maybe he would be prepared to wait until next year to see whether we can be more generous.

Dr Augustine Tan: Sir, would the Hon. Minister like this House to give him the power to grant exemption without coming back to the House every year?

Mr Hon Sui Sen: I do not think that would be necessary. I think we can be generous without being given the freedom. In any case, I hope the House would pass any Bill which I introduce here which allows for more generous exemptions.

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 possed.