Why sudden change in productivity grant scheme?

I could not agree more with Mr Paul Chan Poh Hoi on the need to educate small and medium-sized enterprises (SMEs) on the Productivity and Innovation Credit (PIC) scheme ("Educate SMEs on PIC scheme to prevent fraud"; Monday).

This guidance should also be extended to customers of SMEs who are often professionals - for example, doctors - without expert knowledge on such matters.

A case in point is the use of digital technology for taking X-ray images, including those for dental and veterinary usage.

This technology helps to improve productivity and, until recently, veterinary and dental practices (which otherwise would have met the required criteria) were granted approval under PIC for buying this equipment.

However, of late, the Inland Revenue Authority of Singapore has rejected applications for the same equipment, when applications to tap the PIC scheme for such equipment were approved in the past.

This change in policy is quite difficult to understand, especially since the Government is trying to boost productivity on all fronts.

Raju M. Iyer

A version of this article appeared in the print edition of The Straits Times on March 05, 2016, with the headline 'Why sudden change in productivity grant scheme?'. Print Edition | Subscribe