We thank Mr Raju M. Iyer for his feedback ("Why sudden change in productivity grant scheme?"; last Saturday).

He suggested that there was a recent change of policy resulting in rejections of applications to tap the Productivity and Innovation Credit (PIC) scheme for the use of digital X-ray equipment by medical professionals.

There has been no change to the administration of the PIC scheme.

For pieces of equipment such as those mentioned by Mr Iyer that are not in the prescribed PIC IT and Automation and Equipment List eligible for PIC benefits, the Inland Revenue Authority of Singapore will review them on a case-by-case basis.

Applications will be approved if they meet the two qualifying conditions of automating work processes and enhancing the business' productivity, taking into account the prevailing state of the specific industry.

In the case where a business has acquired a digital X-ray machine which is commonly recognised as standard, basic industry equipment used by comparable businesses in the same industry and where there is no evident increase in the business' productivity, the PIC claim may not be allowed.

Kelly Wee (Ms)

Director (Corporate Communications)

Inland Revenue Authority of Singapore