438
Objects and Reasons.
1. The object of this Ordinance is to tax, with certain exceptions mentioned in section 6 (3) and (4), all light hydrocarbon oils used in the Colony.
A drawback equal to the amount of the duty will be granted in respect of oils on which the duty has been paid, if such oils are exported. Necessary Regulations providing for drawback are contained in the First Schedule to the Ordinance.
2. The amount of the duty is fifteen cents per gallon, but provision is made in section 7 for varying the same.
3. A convenient title for the Ordinance is the Motor Spirit Ordinance, 1930.
4. The Ordinance follows closely the provisions of the Tobacco Ordinance, No. 10 of 1916, as amended by Ordinance No. 3 of 1929.
5. Section 2 defines hydrocarbon oils and light oils, and a list of light oils is contained in the Fourth Schedule to the Ordinance. The definitions are adapted from section 2 of the Finance Act, 1928. (18 & 19 Geo. 5, Ch. 17.)
6. Sections 3, 4 and 5 are based on the correspond- ing sections of the Tobacco Ordinance, 1916.
7. Section 6 (1) and (2) impose duty at the rate of fifteen cents per gallon on all light oils imported into olony after the coming into force of the Ordin- ance and on all light oils imported before but landed after the commencement of the Ordinance.
Duty is also imposed on stocks of light oils exceed- ing one thousand gallons held by any person at the commencement of the Ordinance. These two sub- sections are based on section 2 of the Finance Act, 1928.
If hydrocarbon oils be imported and manufactured into light oils such light oils shall also pay duty, but if the manufactured light oils are exported under an export permit, no duty is payable. No duty is to be payable on light oils purchased or imported as ships stores or on account of His Majesty's Government or the Government of the Colony.
8. Sections 7 to 34 inclusive are respectively based on sections 7 to 36 inclusive of the Tobacco Ordinance, 1916, as amended by Ordinance No. 3 of 1929.
9. Section 35 empowers the Governor in Council to grant to licensed importers, conditional exemption from any of the provisions of the Ordinance. The precise conditions have not yet been settled but the object in view when settling them will be to extend to well established oil companies of high financial standing every reasonable facility for the payment of duty without unnecessary interference with the expeditious and convenient handling of their oils.
10. Sections 36 to 61 inclusive are respectively based on sections 37 to 64 of the Tobacco Ordinance, 1916, as amended by Ordinance No. 3 of 1929.
11. The First Schedule contains regulations relating to Drawback, General Bonded Warehouses, Licensed Warehouses and Manufacturers and Retailers Licenses.
12. The Second Schedule contains forms for use under the Ordinance.
13. The Third Schedule gives a list of fees payable in respect of warehouses and licenses.
14. The Fourth Schedule has already been referred to in paragraph 5 bereof.
June, 1930.
C. G. ALABASTER,
Attorney General.