26.

In 1998, against a background of economic recession, a 55 per cent property tax rebate for commercial and industrial properties was granted for two years, starting 1 July 1998. Although the real estate sector has shown recovery in the past year, rental markets remain weak. I have therefore decided to extend the rebate for another year, up to June 2001, but at a lower rate of 25 per cent. This will also help to ease cost pressures on companies generally. Revenue foregone is estimated at $250 million. HDB, JTC and other Government agencies owning properties will pass most of the rebate to their tenants. I would also urge private landlords to do likewise, and pass on at least half of the rebate to their tenants.