STAMP DUTIES (AMENDMENT) BILL

Order for Second Reading read.

The Minister for Finance (Dr Richard Hu Tsu Tau): Mr Speaker, Sir, I beg to move, "That the Bill be now read a Second time."

The purpose of this Bill is to give legislative effect to the stamp duty concession announced in the financial year 1985 Budget Statement. Opportunity is also taken to incorporate two other concessions and an amendment to the Act.

Specifically, the Bill seeks to extend stamp duty exemption to include the following:

(i) Other offshore Asian Currency Unit (ACU) credit facilities such as underwriting facilities, letters of credit (including standby letters of credit), guarantees and performance bonds. This was announced in the financial year 1985 Budget Statement. Clauses 2(b) and 2(c) of the Bill provide for this.

(ii) Non-underwritten offshore ACU facilities for the issue of notes, bonds, certificates of deposit or other instruments of indebtedness. Clause 2(b) provides for this.

(iii) Any assignment of an interest in a non-ACU offshore facility, provided the assignment is made by a person outside Singapore to an ACU in Singapore. Clause 2(b) provides for this.

All the concessions will take effect retrospectively from 8th March 1985.

The Stamp Duties Act will also be amended to make it explicit that any assignment of an interest in an offshore facility, where drawdown has not taken place, is exempt from stamp duty. Clause 2(b) provides for this.

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. - [Dr Richard Hu Tsu Tau].

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