Prof M Katz was supportive of R & D initiatives broadly, however he raised a concern about the proposed deduction of 150% on R & D expenditure. He argues that historically, whenever an incentive has been given that gives more than 100% deduction expenditure incurred leads to wasteful expenditure, and abuse. Prof Katz is of the view that R & D support should not be given through the tax system but through the accelerated depreciation allowance for capital expenditure.