Corporate income tax was last reduced to 27 per cent in 1994. As a further step towards the medium term target of 25 per cent, the corporate tax rate will be reduced by 1 percentage point, from 27 to 26 per cent, with effect from Year of Assessment 1997. This will help maintain our attractiveness to foreign investors and at the same time lighten the burden on local industries. Revenue loss is estimated to be $200 million annually.