TAX CONCESSIONS 1990

Dr Lee Siew-Choh asked the Minister for Finance if he will inform the House of (i) the total estimated sum, businesses (local and foreign separately if available) have benefitted from the tax concessions given in the Budget for FY 1990, and (ii) the amount of corporate income tax collected for FY 1986, 1987, 1989 and 1990.

Dr Richard Hu Tsu Tau: The tax concessions introduced in the FY 90 Budget took effect from the Year of Assessment 1991, that is, they are applicable to income earned in 1990. Companies are still in the process of filing their tax returns with the Inland Revenue Department for Year of Assessment 1991. In view of this, it is not possible, at this point in time, to estimate the revenue loss arising from the tax concessions introduced in the FY 90 Budget.

The amount of corporate income tax collected for each financial year from FY 86 to 90 is given below: Corporate Income FY Tax Collection ($m) 86 1,361.2 87 1,549.7 88 1,871.1 89 2,664.6 90* 3,003.0 * Estimated Collection list - EXAMPLES OF SCHEMES/POLICIES INITIATED BY MINDEF TO RECOGNISE AND ASSIST RESERVISTS OVER THE YEARS (Cols. 487 - 488) charts - GROSS RATE OF RETURN IN MANUFACTURING vs REAL GDP GROWTH, NOMINAL GDP GROWTH, PROFIT SHARE AND CHANGES IN PROFIT BEFORE TAX OF COMPANIES, SINGAPORE'S RELATIVE UNIT LABOUR COST AGAINST THE OTHER NIEs AND UNIT BUSINESS COST OF MANUFACTURING (1980=100) (Cols. 489 - 494)