Mar is eol do na Seanadóirí, bíonn ar an Aire Airgeadais Bille mar seo a chur ós cóir an Oireachtais gach bliain go mórmhór chun éifeacht in a thabhairt in aghaidh na bliana airgeadais ar fad, do na Rúin Airgeadais lena nglacann an Dáil tar éis na Cáinfhaisnéise. Toisc téarmaí an Achta um Bhailiú Shealadach Cánach, 1927, ní bhíonn éifeacht reachtúil ach ar feadh tréimhse teoranta ag na Rúin sin.
Tá eolas cheana ag Seanadóirí ar abhar furmhór forál an Bhille, mar rinneadh tagairt dóibh san Oráid Cháinfhaisnéise. Tá, freisin, forála áirithe chun faoiseamh ó diúitéthe áirithe in éifeacht anois faoin Acht Cumhachta Práinne, 1939, do leanúint. Bhéarfad tuairisc níos cruinne orthu sin ar ball agus ar chúpla mion-rud eile atá ann.
Ghlac an Dáil leis an mBille seo seachtain ó shoin agus molaim é anois don tSeanad.
The main purpose of this Finance Bill is to give continuing effect to the taxes and duties embodied in the Financial Resolutions passed by Dáil Éireann following the Budget and to provide for the other matters referred to in the Budget speech which require legislation. As Senators are already familiar with the salient features of the 1946 Budget, the majority of the provisions of the Bill will not be new to them.
Opportunity is, however, being taken to incorporate in ordinary legislation certain revenue provisions at present in force under emergency powers legislation and to amend certain revenue laws for convenience in administration. It is, I think, scarcely necessary for me to go into these provisions fully at this stage as Senators will have ample opportunity later of examining them 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.
Section 1 is the customary "charging" section providing for the imposition of income-tax, surtax and excess surtax for the year 1946-47 and for the continuance in force of the existing enactments relating to those taxes.
Section 2, which repeals Rule 8 of Schedule E of the Income-Tax Act, 1918, is designed to remove an old and obsolete provision from the income-tax code.
Section 3 brings up to date the existing exemption from income-tax in respect of wounds and disability pensions and gratuities under the Army Pensions Acts.
Section 4 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 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 provides for a special allowance in respect of capital 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 a mine finally ceases to be operated.
Section 7 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 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.
Section 9 terminates the existing customs and excise duties on sugar and molasses and provides for the continuance of the duties and drawbacks on glucose and saccharin.
Section 10 provides for a reduction of 6d the gallon as from 1st June, 1946, in the rates of customs and excise duty on mineral hydrocarbon light oils. The bulk of the customs duty is received from petrol. The effect of the reduction in excise duty is nil as there is no production of home refined oil at the present time.
Section 11 provides for similar reduction in the customs and excise duties on hydrocarbon oils. In view of provisions for rebate the duties are, in effect, chargeable only on oils intended for use in propelling motor vehicles. The effect of the reduction in excise duty is nil as there is no home production of this oil at the present time.
Section 12 incorporates the provisions of Emergency Powers (No. 217) Order, 1942, under which second copies of certain cinematograph films may be imported at half the existing rate of duty. Transport difficulties in this country, which still remain, and a world shortage in films, which is likely to continue for some time, have 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 abolishes as from 1st August next the entertainments duty on payments for admission to céilithe and dances.
Section 14 follows on the decision to establish a customs-free airport at Rineanna. 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 Emergency Powers (No. 303) Order, 1943, which exempts gifts of food from the fixed minimum duty of 2/6 (or 1/- in the case of goods from the United Kingdom or Canada). 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. Extension of this exemption and its incorporation in ordinary legislation will 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.
Section 18 exempts from customs or excise duty 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. Section 21 of the Finance Act, 1936, and Section 20 of the Finance Act, 1941, which are being repealed, provided for similar exemptions, but in respect of transatlantic air services only.
Section 19 provides for the exemption from payment of customs duty of articles required temporarily for rescue, salvage and repair of damaged aircraft registered in another State. The section implements agreements on this subject adopted by each member State at recent meetings of the Provisional International Civil Aviation Organisation.
Section 20 reduces the minimum quantity of beer, wine and spirits which may be sold by wholesale dealers to licensed retailers. Since the legal minima were originally fixed, the increased cost and scarcity of liquors during the emergency have made it difficult for small retailers to purchase and for wholesalers to distribute available supplies and the position has been regulated by Emergency Powers Order. 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.
Section 23 repeals Section 32 of the Excise Management Act, 1827, and is intended to be in substitution therefor. It rectifies defects in the 1827 statute which has been found to be insufficient and inappropriate to present conditions.
Section 24, which applies only to accounting periods ending on or after the 1st January, 1941, enables assessments to corporation profits tax and excess corporation profits tax to be made at any time. It also provides that, in the absence of a return of the necessary information, the Revenue Commissioners may make an assessment according to the best of their judgment.
Section 25 provides that profits arising on or after the 1st January, 1947, shall not be chargeable to excess corporation profits tax.
Section 26 is a "construction" clause for corporation profits tax (including excess corporation profits tax).
Section 27 applies to certain cases where proceedings in revenue matters are taken in the High Court or in the Circuit Court for the recovery of a tax or penalty which is due and payable for the benefit of the Central Fund. The section, which specifies the form of execution order to be granted in such cases, is designed to remove certain defects and archaisms in the existing form of the order.
Section 28, when enacted, will enable effect to be given to the proposals in the Budget statement in relation to interest on deposits in the Post Office Savings Bank and the trustee savings banks. As matters stand, the interest payable on Post Office Savings Bank deposits is at the fixed rate of 2½ per cent. per annum as laid down in Section 7 of the Post Office Savings Bank Act, 1861; in the case of the trustee savings banks, the position is governed by Section 5 of the National Debt (Supplemental) Act, 1888, which prescribes that interest on a deposit in a trustee savings bank shall not exceed 2½ per cent. per annum. Present conditions require greater flexibility in this matter and, in lieu of the fixed statutory rate of 2½ per cent. for the Post Office Savings Bank, the Bill confers an enabling power to prescribe the interest, by Order, at such rate or rates as may be considered desirable from time to time.
It is my intention in the first Order to fix the interest rate of 2 per cent. per annum for deposits of £300 and under and on the first £300 of larger deposits; for deposits exceeding £300 the rate will be 1¼ per cent. on the amount of the excess. Section 29 is consequential on Section 28 and ensures that the trustee savings banks will remain free to fix their own interest rates subject to the limitation that the rate shall not exceed the rate for the time being appropriate to a deposit of like amount in the Post Office Savings Bank.
I indicated in my Budget statement that the third issue of savings certificates was being withdrawn on the 8th May, and that a new issue of lower-yielding certificates would be introduced. The cost price of a unit certificate will continue to be 16/-. The value after ten years will be £1 and after 11 years, 21/- The yield at compound interest if held to maturity is £2 10s. 1d. per cent. per annum. The necessary printing arrangements are in hands and it is hoped that the new issue will be on sale about the end of this month.
Section 30 legalises the establishment of the Transition Development Fund referred to in my Budget statement last month. On that occasion and on the Second and Committee Stages of the Finance Bill in the Dáil I gave some indications of the purposes for which I intended the fund would be utilised. When the Bill becomes law it will be necessary to introduce a new Estimate and I hope then to be able to indicate in greater detail the purposes to which the moneys in the fund will be devoted.
Section 31 repeals the enactments cited in the Fourth Schedule. The repeal of Section 32 of the Excise Management Act, 1827, is consequential on Section 23 of the Bill and the repeal of Section 21 of the Finance Act, 1936, and Section 20 of the Finance Act, 1941, is consequential on Section 18.
Section 32 is the customary care and management provision, and Section 33 is the usual section relating to the short title, construction and commencement of the Bill.