Mixed reactions to steps to control business costs

THE proposal to raise the existing corporate income tax (CIT) rebate, with a higher percentage rebate targeted at SMEs, has received a lacklustre response with market watchers taking issue with the rebate cap and questioning the effectiveness of tax rebates in the current climate.

Said Anna Low, tax partner at KPMG in Singapore: "The increase in corporate tax rebate would only benefit SMEs who are paying tax. Startups who are making tax losses will not be able to enjoy the benefits."

Singapore Retailers Associa- tion's (SRA) vice-chairman R Dhinakaran agreed. "If it is a loss- making year, what is the benefit of tax (rebate)? How many people can take benefit from that?"