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.