XN000022-1976-05-21 — Page 10

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FRIDAY, MAY 21, 1976.

LEGISLATION TO IMPLEMENT THREE BUDGET PROPOSALS

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AMENDING LEGISLATION IS PUBLISHED TODAY TO IMPLEMENT THREE REVENUE PROPOSALS MADE BY THE FINANCIAL SECRETARY IN HIS BUDGET SPEECH IN FEBRUARY THIS YEAR.

THE AMENDMENTS ARE CONTAINED IN THE INLAND REVENUE (AMENDMENT) BILL, 1976- THE ESTATE DUTY (AMENDMENT) BILL, 1976 AND THE STAMP (AMENDMENT) (NO.2) BILL, 1976, WHICH WILL ALL GO BEFORE THE LEGISLATIVE COUNCIL SHORTLY.

THE INLAND REVENUE (AMENDMENT) BILL, INCREASES FROM 16-1/2 PER CENT TO 17 PER CENT THE RATE OF PROFITS TAX ON CORPORATIONS FOR THE 1976-77 YEAR OF ASSESSMENT AND ALL SUBSEQUENT YEARS.

ONE OF THE CLAUSES IN THE ESTATE DUTY (AMENDMENT) BILL GIVES EFFECT TO INCREASED RATES OF DUTY CHARGEABLE ON ESTATES IN EXCESS OF $1.5 MILLION. THE NEW RATES WILL BE 16 PER CENT FOR ESTATES VALUED BETWEEN $1.5 AND $2 MILLION= 17 PER CENT FOR THOSE BETWEEN $2 MILLION AND $3 MILLION, AND 18 PER CENT ON ESTATES VALUED OVER $3 MILLION. THEY WILL COME INTO EFFECT AFTER THE BILL HAS BEEN PASSED. THE RATES ON ESTATES BELOW $1.5 MILLION REMAIN UNCHANGED.

TWO OTHER AMENDMENTS TO THE PRINCIPAL ORDINANCE ARE ALSO PROPOSED IN CONNECTION WITH ACTION IN THE DISTRICT COURT TO RECOVER ESTATE DUTY.

THE STAMP (AMENDMENT)(NO.2) BILL IMPLEMENTS THE BUDGET PROPOSAL TO INCREASE THE BASIC RATE OF AD VALOREM DUTY ON ASSIGNMENTS AND ALLIED DOCUMENTS FROM 2-1/4 PER CENT TO 2-3/4 PER CENT ON DOCUMENTS EXECUTED ON OR AFTER APRIL 1, 1976. THE CONCESSIONARY RATES APPLICABLE TO CONVEYANCES OF LAND NOT EXCEEDING $150,000 IN VALUE ARE NOT AFFECTED.

ALSO, UNDER ANOTHER AMENDMENT, CRIMINAL LIABILITY FOR FAILING TO STAMP A DOCUMENT IS DROPPED AS IT IS FELT THAT PROVISIONS ALREADY IN THE ORDINANCE PROVIDING FOR RECOVERY OF STAMP DUTY BY CIVIL ACTION IS SUFFICIENTLY EFFECTIVE.

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