I move that the Bill be now read a Second Time.
Last year the provisions of the Finance Bill were so long and complex that I took what was then the unusual step in the case of a Finance Bill of circulating an explanatory memorandum with the text of the Bill. This year's Bill has neither the length nor the complexity of last year's but I repeated the procedure of issuing an explanatory memorandum as it might be of assistance to Deputies in considering the Bill.
In view of the issue of the explanatory memorandum it is hardly necessary for me now to give a section by section account of the Bill. It may help, however, if I mention briefly the principal matters with which the several parts of the Bill are concerned.
Part I imposes Income Tax and Sur-tax for the current year at last year's rates. The Finance (No. 2) Act, 1959, which is referred to in Section 1 of the Bill, made, as Deputies will remember, alterations in the personal allowances and reliefs for this year in order to pave the way for the introduction of Pay As You Earn. The present Bill increases the income tax and sur-tax deduction for children and broadens the tax exemption in respect of deposit interest in the case of a husband and wife.
Provisions benefiting industry are also included. There are additional reliefs for business losses and the tax advantages flowing from Section 7 of the Finance Act, 1932, are being extended to securities of Irish manufacturing companies issued before 1932. Profits of harbour authorities are being exempted from tax.
Only Sections 8 and 9 were not foreshadowed in the Budget speech. The purport of these sections has, of course, been given in the explanatory memorandum.
Part II of the Bill is mainly concerned with the proposals in the Budget speech in relation to customs and excise duties. The sections in it provide for the various reliefs relating to entertainments duty, table waters duty, and hydrocarbon oils; abolish tobacco dealers' licences; amend the law relating to liquor licences and hydrocarbon oils for the purpose of providing more efficient, equitable and economic administrative procedures; and increase the duties on tobacco.
This Part of the Bill also contains a section concerned with rather detailed points of motor taxation law as already set out in the explanatory memorandum. I should, perhaps, mention that these points came to a head too late to have them included in the recent Finance (Excise Duties) (Vehicles) (Amendment) Act, 1960.
Four orders relating to special import levies and miscellaneous customs and excise duties are confirmed in the final section in this Part of the Bill.
The effect of Part III is to raise the exemption limit for death duties from £2,000 to £5,000.
Part IV brings within the scope of "exports" relief Irish-made goods exported by a company other than their manufacturer. The terminal date for "exports" relief will now be the year 1974-75 and a five year period of tapering relief will follow the exemption period. Safeguards are included to prevent unfair advantage being taken of these reliefs.
There are provisions, in Parts IV and VI, designed to encourage the expansion of the tourist industry. Holiday camps will be treated in the same way as hotels as regards tax allowances in respect of capital expenditure. In the case of expenditure incurred on or after the 1st January, 1960, the annual allowance will be 10 per cent. instead of 2 per cent. Such expenditure will of course also qualify for the 10 per cent. initial allowance so that, in the normal case, it will be written off for tax purposes over nine years.
Part IV also provides that profits from the mining of gypsum will qualify for the tax relief applicable to profits from coal-mining.
Part V of the Bill abolishes the stamp duty on passports and on special forms of bank draft to be used by employers in remitting income tax under Pay As You Earn. It also authorises the use of adhesive stamps instead of impressed stamps on copies of documents issued by district probate registries.
Part VI of the Bill deals with miscellaneous matters. It contains the usual section relating to the Capital Services Redemption Account; subject to conditions set out in Section 38, it makes certain tax reliefs available where a person was adopted informally and it extends the scope of the tax relief provided in 1956 for mines of non-bedded minerals. There is also a section in it relating to tax relief in respect of expenditure on the construction or extension of hotels and holiday camps. I mentioned this already in commenting on Part IV.
That, very briefly, is the scope of this year's Bill. Debate on the Finance Bill is mainly a matter for Committee Stage and I shall be glad to deal with any points of detail on that Stage.