XN000022-1978-04-12 — Page 17

WEDNESDAY, APRIL 12, 1978

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BILLS TO GIVE LEGISLATIVE EFFECT TO

STAMP DUTY PROPOSALS IN BUDGET

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THREE BILLS SEEKING TO AMEND THE STAMP ORDINANCE TO LOWER STAMP DUTY ON SHARE TRANSACTIONS AND TO ABOLISH DUTIES ON CHEQUES AND BANK NOTES RECEIVED THEIR SECOND READING IN THE LEGISLATIVE COUNCIL TODAY.

THEY ARE THE STAMP (AMENDMENT) BILL 1978 STAMP (AMENDMENT) (NO. 2) BILL 1978 AND STAMP (AMENDMENT) (NO. 3) BILL 1978.

MOVING THE BILLS, THE FINANCIAL SECRETARY, THE HON. PHILIP HADDON-CAVE SAID THE STAMP (AMENDMENT) BILL 1978, IF ENACTED, WOULD GIVE LEGISLATIVE EFFECT TO AN ORDER MADE BY THE GOVERNOR-IN-COUNCIL UNDER THE PUBLIC REVENUE PROTECTION ORDINANCE TO ABOLISH STAMP DUTY ON BANK NOTES FROM MARCH 1 THIS YEAR.

BEFORE THAT DAY, THE ORDINANCE PROVIDED FOR STAMP DUTY TO BE PAID MONTHLY BY NOTE-ISSUING BANKS AT ONE AND A HALF PER CENT PER ANNUM ON THE AVERAGE VALUE OF BANK NOTES IN CIRCULATION.

THE FINANCIAL SECRETARY ESTIMATED THE COST TO THE REVENUE OF WAIVING SUCH DUTY IN 1978-79 IS $1.5 MILLION.

ON THE STAMP (AMENDMENT) (NO. 2) BILL 1978, MR. HADDON-CAVE SAID ITS OBJECT WAS TO ABOLISH STAMP DUTY ON CHEQUES ISSUED BY LOCAL BANKS TO THEIR CUSTOMERS FROM MARCH 2, THIS YEAR.

HE SAID: +A BANK IS NOT RELIEVED OF ANY LIABILITY FOR THE PAYMENT OF DUTY ON CHEQUES ISSUED TO ITS CUSTOMERS PRIOR TO MARCH 2, 1978 EXCEPT WHERE THE COLLECTOR OF STAMP REVENUE IS SATISFIED THAT THE CHEQUES HAD BEEN RETURED BY THE CUSTOMERS TO THE BANK PRIOR TO MARCH 2, 1978 AS SPOILED OR UNUSED, HE SAID.

THE ESTIMATED COST TO THE REVENUE OF WAIVING THIS DUTY IN

1978-79 15 921 MILLION.

THE STAMP (AMENDMENT) (NO. 3) BILL IS TO GIVE LEGISLATIVE EFFECT TO AN ORDER BY THE GOVERNOR-IN-COUNCIL UNDER THE PUBLIC REVENUE PROTECTION ORDINANCE TO LOWER STAMP DUTY ON SHARE CONTRACT NOTES FROM $8 PER MILLE ON EACH TRANSACTION TO 6 PER MILLE FROM MARCH 6.

MR. HADDON-CAVE SAID THE BILL ALSO AMENDS EXTENSIVELY THE PRINCIPAL ORDINANCE TO ACHIEVE ITS OBJECT. +CONSEQUENTIAL AMENDMENTS TO THE STAMP DUTIES MANAGEMENT ORDINANCE, COMPANIES ORDINANCE, STAMP AND DENOTING OF DOCUMENTS REGULATIONS AND STAMP DUTIES MANAGEMENT (FRANKING MACHINES) REGULATIONS ARE SET OUT IN THE SCHEDULE TO THE BILL, HE SAID.

THE COST TO THE REVENUE OF LOWERING SUCH DUTY IN 1978-79 IS ESTIMATED AT $132.5 MILLION.

MR. HADDON-CAVE POINTED OUT THAT IN FUTURE THE STAMP ORDINANCE SHOULD APPLY ONLY TO THREE MAJOR SOURCES OF DUTY: NAMELY, TRANS- ACTIONS IN SHARES AND MARKETABLE SECURITIES, ASSIGNMENTS OF IMMOVABLE PROPERTY AND LEASES AND AGREEMENTS FOR LEASES.

DEBATES ON THE THREE BILLS WERE ADJOURNED.

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