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Ernst & Young adds to calls for extension of PIC scheme in Budget 2014

Published on Jan 9, 2014 2:51 PM

Another tax specialist has suggested that the Productivity and Innovation Credit (PIC) scheme should be extended and refined in the upcoming Budget.

In its wishlist for this year's Budget, Ernst & Young called for the scheme - set to expire when the Government's 2014 financial year ends in March 2015 - to be extended for a further five years.

"Efforts to encourage productivity and innovation will be short-lived if the PIC is phased out, especially when investments in productivity are just beginning to take off," said Ms Tan Bin Eng, Business Incentives Advisory partner at Ernst & Young.

The PIC, which has been enhanced each year since it was introduced in 2010, allows businesses to deduct from their taxable income 400 per cent of the first $400,000 spent on productivity-related investments.

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