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Thursday, March 1, 1973
The number of adhesive stamps which brokers will require to buy
and account for, said Mr. Rainbow, will be substantially reduced as a
result of these changes.
He said the stock exchanges had been asked to recommend to their members
that they should use up their stocks of small denomination adhesive stamps, as far
as possible, in making up the multiples of $4 which will now be required.
"Requests for the repurchase or exchange of large numbers of small
value stamps," he added, "would cause serious delays in the Stamp Office
as well as unnecessary work and inconvenience for all concerned."
On transfer duty, the Commissioner said there would be no change in
the fixed duty of $5 payable on instruments of transfer relating to shares
or marketable securities.
Gifts Of Shares
But, as announced by the Financial Secretary yesterday, the ad valorem
element in the duty payable on transfers relating to gifts of shares or marketable
securities has been doubled.
Until yesterday, the duty payable on these "gift" transfors was
$5 plus 40 cents for every $100 or part thereof of the value of the shares or
marketable securities (the duty on such a transfer being the same as the total
duty paid in the case of a sale, that is on two contract notes and a transfer).
Following the Budget, the duty on a "gift" transfer will still be the
same as the total duty on a sale, namely 35 plus $8 per $1,000 or part thereof
of the value of the shares or marketable securities.
The change of rate will affect gifts of shares or markotablo securities
made today or later.
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