Tairgim go ndéantar an Bille Airgeadais, 1946, do léamh den dara huair. 'Sé príomh-chuspóir an Bhille seo ná éifeacht do thabhairt in aghaidh na bliana airgeadais ar fad do na Rúin Airgeadais lenar ghlac an Dáil tar éis na Cáinfhaisnéise. Mar is eol do na Teachtaí, ní bhíonn éifeacht reachtúil ach ar feadh thréimhse teoranta ag na Rúin a ritheann an Coiste um Airgeadas den Dáil.
Cuireadh adhbhar furmhór na bhforálacha eile den Bhille fé bhráid na Dála cheana san Oráid Cáinfhaisnéise. 'Na dteannta san, tá forálacha ann a thugann cómhacht chun faoiseamh ó diúitéthe áirithe, a tugadh fén Acht Cómhacht Práinne, 1939, do coimead in éifeacht. Bhéarfad tuairisc níos cruinne ar na forálacha san ar ball agus ar chúpla mion-rud eile atá san Bhille.
The main purpose of this Bill is to give continuing effect to the taxes and duties embodied in the Financial Resolutions passed by Dáil Eireann following the Budget. As Deputies are aware, these Resolutions have statutory effect for only a limited period under the Provisional Collection of Taxes Act, 1927. The majority of the provisions have been either the subject of Financial Resolutions or were referred to in my Budget speech of last month.
Opportunity is, however, being taken in this Bill to incorporate in ordinary legislation certain revenue provisions at present in force under emergency powers legislation and also to amend the revenue laws in minor ways for convenience in administration. It is not, I think, necessary for me to go into these provisions fully at this stage as Deputies will have ample opportunity later of examining each of the sections in detail. For the present, therefore, I trust that the House will be satisfied with a brief reference to the various sections of the Bill as introduced.
Part I—Income-tax—Section 1, which corresponds to Financial Resolution No. 1, passed on Budget day, is the customary "charging" section which provides for the imposition of income-tax, surtax and excess surtax for the year 1946-47. It also makes provision for the continuance in force of the existing enactments relating to those taxes.
Section 2, which was covered by Financial Resolution No. 2, repeals Rule 8 of Schedule E of the Income Tax Act, 1918, and is designed to remove an old and obsolete provision from the income-tax code.
Section 3 is a relieving section, introduced to bring up to date the existing exemption from income-tax in respect of wounds and disability pensions and gratuities granted under the Army Pensions Acts.
Section 4 is also a relieving section. It extends, by reference to the emergency years 1939-40 to 1945-46, the period within which losses incurred in a trade or profession can be carried forward for income-tax purposes and deducted from subsequent profits. The section will benefit those concerns which, because they fared badly during the emergency, did not make sufficient profits to absorb the losses carried forward.
Section 5, to which reference was also made in the Budget speech, provides for a special allowance in respect of revenue or capital expenditure on scientific research in the industrial field. Revenue expenditure within the scope of the section will be allowed as an expense in computing the profits of the trade, while the allowance in respect of capital expenditure will be spread over a period of five years.
Section 6, which was foreshadowed in the Budget speech, provides for a special allowance in respect of capital sums expended in the development of mines. The allowance will extend to sums expended on searching for, discovering and testing mineral deposits, and on the construction of works whose value is likely to be little or nothing when the mine finally ceases to be operated.
I come now to Part II dealing with customs and excise. Section 7, which corresponds to Financial Resolution No. 3, provides for a basic increase of 12/6 the proof gallon in the rates of duty on foreign spirits and for an increase of 12/6 the proof gallon in the case of home-made spirits.
Section 8, which corresponds to Financial Resolution No. 4, provides for an increase in the full rates of customs duty on wines to double the existing rates, which were imposed in 1930, and for corresponding preferential rates in respect of wine produced in and consigned from countries within the British Commonwealth of Nations. The ratio of the preferential rates to the full rates varies from 50 per cent. to 70 per cent.
Section 9, which corresponds to Financial Resolution No. 5, provides for the termination of the existing customs and excise duties on sugar and molasses and for the continuance of the duties and drawbacks on glucose and saccharin.
Section 10, which corresponds to Financial Resolution No. 6, provides for a reduction as from 1st June, 1946, in the rates of customs and excise duty on mineral hydrocarbon light oils from 1/3 to 9d the gallon and from 1/1 to 7d the gallon, respectively. The oils to which the duty applies include petrol, benzol, white spirit, etc., but the bulk of the customs duty is received from petrol. As there is no production of home refined oil at the present time the effect of the reduction on excise duty is nil.
Section 11, which corresponds to Financial Resolution No. 7, provides for similar reductions in customs and excise duties on hydrocarbon oils. The scope of the duties include such oils as crude mineral oils, fuel oil, diesel oil, gas oil, paraffin oil and turpentine, but in view of provisions for rebate, the duties are, in effect, chargeable only on oils intended for use in propelling motor vehicles. As there is no home production of this oil at the present time the effect of the reduction in excise duty is nil.
Section 12 incorporates the provisions of Emergency Powers (No. 217) Order, 1942, which enables second copies of certain cinematograph films to be imported at half the existing rate of duty. The main consideration which gave rise to this concession in 1942 was transport difficulties in this country, which still remain. In addition, a world shortage in films, which is likely to continue for some time, has a bearing on the position. The question of withdrawing the concession will be considered when there is an improvement both in transport facilities and in the supply of films.
Section 13, which was foreshadowed in the Budget speech, abolishes as from 1st August next the entertainments duty on payments for admission to céilidhthe and dances.
Section 14 follows on the Government's decision to establish a customs-free airport at Rineanna for which purpose a Bill is to be introduced by the Minister for Industry and Commerce. The section provides (1) that all goods imported direct from abroad into the customs-free airport shall not be liable to duty, and (2) that any goods removed from the airport to any other part of the State shall be chargeable with duty in the ordinary way.
Section 15 is designed to incorporate in ordinary legislation the provisions of Emergency Powers (No. 303) Order, 1943. This Order exempts gifts of food from the provision whereby customs duty is charged at the fixed minimum sum of 2/6 (or 1/- in the case of goods from the United Kingdom or Canada), if the duty on any individual class of goods contained in one consignment or parcel would amount to less than 2/6. The effect of the section is that imported parcels of food sent as gifts will be charged only with the actual duty without regard to the minimum duty.
Section 16 provides for the exemption from package duty of (a) goods imported as gifts, and (b) goods for the personal use of the importer brought in by the importer or his servant or a member of his family. Under Emergency Powers (No. 348) Order, 1944, the package duty on gifts of food is at present suspended. It is considered that extension of the exemption in the manner indicated and its incorporation in ordinary legislation would make for convenience in revenue administration and remove a possible source of irritation.
Section 17 provides for permanent exemption from customs duty of goods imported by the Irish Red Cross Society as gifts or on loan from a Red Cross organisation abroad and imported solely for the purposes of the society. Since September, 1942, exemption from customs duty has been allowed under an Emergency Powers Order in respect of any article supplied to the society by a Red Cross organisation in any other country.
Section 18 provides for the exemption from customs or excise duty of articles required for use in connection with the establishment and maintenance of international air services using Irish airports. The main purpose of the section is to implement the customs provisions of the draft Convention on International Civil Aviation drawn up at Chicago in November, 1944, and ratified by the Dáil on 19th April, 1945. Section 21 of the Finance Act, 1936, and Section 20 of the Finance Act, 1941, which are being repealed, provided for similar exemption but in respect of transatlantic air services only.
Section 19 provides for the exemption from payment of customs duty of articles required for rescue, salvage and repair of damaged aircraft registered in another State. The section will apply only where the goods are imported temporarily. If they are not exported in due course duty will become chargeable. The purpose of the section is to implement agreements on this subject adopted by each member State at meetings of the Provisional International Civil Aviation Organisation in Montreal last January and February.
Section 20 is identical with Emergency Powers (No. 273) Order, 1943, which reduced the minimum quantity of beer, wine and spirits which may be sold by wholesale dealers to licensed retailers. The Order was made on receipt of representations that, since the legal minima were originally fixed, the increased cost and scarcity of liquors made it difficult for small retailers to purchase and for wholesalers to distribute available supplies. These conditions will, so far as can be foreseen, obtain for a considerable time to come and it is therefore proposed to embody the terms of the Order in ordinary legislation. The position will be reviewed when the supply position returns to normal.
Sections 21 and 22 provide for amendment of the statutes under which excise duty on refreshment house licences and tobacco dealers' licences, respectively, is charged by reference to the "poor law valuation" of the premises. The sections provide for the charging of the duty by reference to the valuation of premises under the Valuation Acts. The amendments, which are purely technical, are necessary consequent on the substitution of the municipal rate for the poor rate in the county boroughs.
