INLAND REVENUE AUTHORITY OF SINGAPORE (AMENDMENT) BILL

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INLAND REVENUE AUTHORITY OF SINGAPORE (AMENDMENT) BILL: Order for Second Reading read.

6.33 pm

The Minister of State for Finance (Mrs Lim Hwee Hua): Mr Deputy Speaker, Sir, I beg to move, "That the Bill be now read a Second time."

Background

Sir, IRAS was set up in 1992 when IRAS was restructured from an MOF department into a statutory board. IRAS' functions as the tax authority of Singapore, as set forth in the IRAS Act, include the administration, assessment and collection of tax payments, and provision of valuation services for immovable properties.

The Bill will amend the Inland Revenue Authority of Singapore Act to allow IRAS to:

(a) raise loans from the Government;

(b) raise loans through credit facilities for purchase of goods or services; and

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(c) raise loans from any source within or outside Singapore with the approval from Minister for Finance, including:

(i) mortgages, overdrafts or other means, with or without security;

(ii) charges on any property vested or on any other revenue receivable; and

(iii) debentures, bonds or any other instrument.

Sir, I shall now explain the proposed amendment.

Expansion of borrowing powers

Currently, the IRAS Act restricts IRAS to borrowing only from banks and other financial institutions but not to issue bonds, even though IRAS could issue bonds at lower interest costs.

The proposed amendment will give IRAS more options to raise funds from the capital markets. This will allow IRAS to be more cost-effective as it will be able to choose the option with the lowest borrowing costs to fund its projects. As a safeguard, loans from non-governmental sources will be subject to the approval of the Minister for Finance.

The same powers had been granted to NUS (National University of Singapore), NTU (Nanyang Technological University) and PUB (Public Utilities Board) when their Acts were amended last year.

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. - [Mrs Lim Hwee Hua].

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