(1) The Minister shall—
(a) at the expiration of 3 years from the production day; and
(b) thereafter at intervals of 2 years until the cessation of all benefits under this Act,
appraise the performance of an approved enterprise for the purpose of determining whether any change in its classification is necessary.
(2) Where, on an appraisal under subsection (1), an approved enterprise—
(a) fails to maintain its classification or cannot be re-classified to any of the other Groups listed in Schedule 3, that enterprise shall, with effect from the date of the notice of the decision of the Minister under subsection (5) be no longer treated as an approved enterprise for the purposes of section 7(2) and of section 12;
(b) maintains its classification or is re-classified to any of the other Groups listed in Schedule 3, that enterprise shall continue as an approved enterprise and the provisions of subsection (1)(b) shall continue to apply.
(3) Where as the result of the re-classification of an approved enterprise to a lower Group, the tax holiday period exceeds the maximum period allowable in that lower Group, Cabinet shall, by order published in the Gazette reduce the period to coincide with the maximum period allowable in the lower Group to which the approved enterprise has been re-classified.
(4) Where an approved enterprise is re-classified to a higher Group, Cabinet may, by order published in the Gazette, increase the tax holiday period to coincide with the maximum period allowable in the Group in which the approved enterprise has been re-classified.
(5) The Minister shall within a reasonable time after an appraisal under subsection (1), serve notice of his or her decision on the approved enterprise.
(6) The provisions of this section shall not apply to a highly capital intensive industry.