4. (3) Until 31st December, 1968, no revenue duty shall, except at the request or with the consent of the Singapore Government, be imposed in Singapore by the Federal Government in respect of any class of goods or products not chargeable with such a duty on 1st July, 1963. Such consent shall not be withheld except on the grounds that the duty would significantly prejudice the entrepot trade of Singapore.
4. (4) Before 31st December, 1968, the Tariff Advisory Board shall review the revenue duties in force at that time in Singapore and in the remainder of Malaysia and shall make recommendations regarding the amendment of such duties or the imposition of additional duties. As from 1st January, 1969, the Singapore Government shall be entitled to withhold its consent to the imposition in Singapore of any revenue duty in respect of any goods or products referred to in sub-paragraph (3) for any period up to 31st December, 1975, on the grounds that it would significantly prejudice the entrepot trade, and, in the absence of such consent, no such duty shall be imposed provided that the Singapore Government shall pay to the Federal Government annually compensation equal to the loss of revenue suffered by the Federal Government as a result of the withholding of such consent.
4. (5) For the purposes of this agreement, the entrepot trade of Singapore means trade in goods and products imported into Singapore from outside Malaysia and primary products imported into Singapore from other parts of Malaysia, which goods or products, whether further processed or not, are subsequently re-exported from Singapore to destinations outside Malaysia.
Tax Collection. 5. Subject to the provisions of the Annex to this Agreement, executive authority in respect of the collection in Singapore of customs duties and excise and income tax shall be delegated to the Singapore Government. The Federal Government may revoke this authority if the Singapore Government fails to comply with any direction properly given to it by the Federal Government for the collection or protection of these taxes or shows itself unwilling or unable to discharge these functions efficiently. This authority may extend to customs duties and other charges collected in Singapore on goods exported from or to be imported into Malaysia outside Singapore.
Division of Revenue. 6. (1) All revenues collected in Singapore, with the exceptions specified below, shall be paid into a separate fund in a branch of the Central Bank to be established in Singapore and the fund shall be divided between the two Governments and paid to them at least once in every year, in the proportion of 60 per cent, to the Singapore Government and 40 per cent, to the Federal Government. The exceptions are—
- (a) the revenues specified in Part III of the Tenth Schedule to the Federal Constitution, including property tax in lieu of rates (to be paid into the State Consolidated Fund);
- (b) customs duties and other charges (including excise not in force at the date of this Agreement and any production tax imposed in respect of goods to which a protective duty is
