8 11 Amendment of section 8 of Cap. 23:06 Section 8 (“Interpretation of terms relating to income tax”)(1) of the Income Tax Act [Chapter 23:06] is amended in the definition of “gross income” with effect from the year of assessment beginning on the 1st January, 2007, in paragraph (f) II— (a) in proviso (ix) by the deletion of “in respect of the year of assessment beginning on the 1st January, 2006, and any subsequent year of assessment,” and the substitution of “in respect of the year of assessment beginning on the 1st January, 2007”; (b) by the insertion after proviso (x) of the following proviso— “(xi) in the case of a motor vehicle, in respect of the year of assessment beginning on the 1st January, 2007, and any subsequent year of assessment, the cost to the employer shall be deemed to be the following⎯ (a) one hundred thousand dollars, in the case of a motor vehicle whose engine capacity does not exceed one thousand five hundred cubic centimetres; (b) one hundred and sixty thousand dollars, in the case of a motor vehicle whose capacity exceeds one thousand five hundred cubic centimetres but does not exceed two thousand cubic centimetres; (c) two hundred thousand dollars, in the case of a motor vehicle whose capacity exceeds two thousand cubic centimetres but does not exceed three thousand cubic centimetres; (d) two hundred and sixty thousand dollars, in the case of a motor vehicle whose capacity exceeds three thousand cubic centimetres; and such deemed cost shall be reduced proportionally where the period of use of the motor vehicle is less than the year of assessment;”. 12 Amendment of section 15 of Cap. 23:06 With effect from the year of assessment beginning on the 1st January, 2007, section 15 (“Deductions allowed in determination of taxable income”) of the Income Tax Act [Chapter 23:06] is amended in subsection (2)— (a) in paragraph (r1) by the deletion from the proviso of “five hundred thousand dollars” and the substitution of “twenty-five million dollars”; (b) in paragraph (r2) by the deletion from the proviso of “five hundred thousand dollars” and the substitution of “twenty-five million dollars”; (c) in paragraph (r3) by the deletion from the proviso of “five hundred thousand dollars” and the substitution of “twenty-five million dollars”; (d) in paragraph (w) by the deletion of “ten thousand dollars” and the substitution of “one million dollars”.