Article: `Lower corporate tax will help to spur investments'

Desmond Ngiam
New Straits Times
10-22-1997
THE Budget's proposal to slash corporate tax from 30 to 28 per cent is
a "pleasant surprise" to stimulate investments in the country, and should
target an eventual rate of 20 per cent.

KPMG Tax Services Sdn Bhd director M.C. Yoon said a declining trend of
the corporate tax rate coupled with a slight increase in the interest rates
will be important in stimulating investments towards productive activity.

With the Government recording a fiscal surplus for the past few
Budgets, he said the economy could afford a further reduction of corporate
tax rate to 20 per cent in 10 to 15 years.

"We should offer something different in our corporate tax ...

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