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STAMP BILL BECOMES LAW
Friday, August 3, 1973
The Stamp (Amendment) (No. 2) Bill 1973 has become law after its
final passage through the Legislative Council on Wednesday.
A notice published in today's Government Gazette said the amending
ordinance will cone into operation on a day to be appointed by the Governor.
The main object of the bill is to make statutory provision for
relief from stamp duty on contract notes in respect of purchases and sales
of shares by a broker on his own account when he is performing a jobbing function.
During the second reading of the bill, the Senior Unofficial Member,
lir. P.C. Woo said the Unofficial Members felt that it would be premature to
grant the concession in respect of a type of business which is not yet provided
for or identified by legislation: the business of jobbers and jobbing should
first of all be fully legislated for and controlled by the Securities legislation
and then stamp duty concessions granted by making regulations under the
Stamp Ordinance.
Mr. Woo also voiced disagreement to the proposal by the Financial
Secretary when moving the second reading that, apart from odd lots, the
proposed relief should be confined to transactions involving overseas clients.
"That," he said, "seems to me to be wrong in principle as transactions
involving local clients should similarly acquire the benefit of the concession."
However, he said he would not wish to go so far as to suggest that these
provisions be removed from the ordinance since the exemption could not become
effective until regulations were made.
Mr. Woo added