THURSDAY, SEPTEMBER 18, 1975
INTEREST ON TAX RESERVE CERTIFICATES LOVERED
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THE RATE OF INTEREST PAYABLE ON TAX RESERVE CERTIFICATES IS TO BE REDUCED FROM TOMORROW (FRIDAY) BY 1-1/2 PER CENT TO 4.2 PER CENT PER ANNUM, TAX FREE.
THE REDUCTION HAS BEEN AUTHORISED BY THE GOVERNOR AND NOTIFICATION WILL BE MADE IN TOMORROW'S GAZETTE. IT REFLECTS THE LOWER COMMERCIAL INTEREST RATES PREVAILING AT THE PRESENT TIME.
A GOVERNMENT SPOKESMAN EXPLAINED THAT INTEREST ON TAX- RESERVE CERTIFICATES IS CALCULATED IN MONTHLY STEPS AND THE NEW RATE WILL BE 35 CENTS PER MONTH PER $100. INTEREST WILL BE CREDITE! AS BEFORE IN RESPECT OF COMPLETED MONTHS BETWEEN THE PURCHASE OF THE CERTIFICATES AND THEIR SURRENDER IN PAYMENT OF TAX.
THE SPOKESMAN ADDED. THAT INTEREST IS ONLY PAID WHEN CERTIFICATES ARE USED TO PAY TAX AND NO INTEREST IS DUE WHERE THE PRINCIPAL VALUE OF A CERTIFICATE IS REPAID IN CASH.
THE NEW RATE OF 4.2 PER CENT WILL APPLY TO ALL CERTIFICATES ISSUED ON OR AFTER SEPTEMBER 19. CERTIFICATES WHICH WERE ISSUED WHEN THE RATE WAS 5.7 PER CENT WILL CONTINUE TO EARN INTEREST AT THAT RATE.
THE SPOKESMAN SAID THAT CERTIFICATES EARNING 5.7 PER CENT INTEREST WERE FIRST ISSUED FROM NOVEMBER 1, 1973. THOSE ISSUED PRIOR TO THAT DATE EARNED 4.2 PER CENT.
+FROM SEPTEMBER 19 (TOMORROW) ONWARDS, THEY WILL AGAIN EARN INTEREST AT 4.2 PER CENT, SUBJECT ALWAYS TO THE GENERAL RULE THAT INTEREST CEASES TO ACCRUE AFTER 36 COMPLETED MONTHS WITHOUT SURRENDER FOR PAYMENT OF TAX,+ HE POINTED OUT.
THE FOLLOWING IS AN EXAMPLE OF THE NEW INTEREST RATES:
$1,000 CERTIFICATES PURCHASED SEPTEMBER, 29, 1975, OCTOBER 29, 1975 AND NOVEMBER 29, 1975 RESPECTIVELY, SURRENDERED IN PAYMENT OF TAX DUE ON JANUARY 3, 1976, WILL HAVE INTEREST CALCULATED AS FOLLOWS:-
ON $1,000, SEPTEMBER 29, 1975 TO DECEMBER 28, 1975 - 3 COMPLETE MONTHS AT $3.50 PER MONTH
$10.50
ON $1,000, OCTOBER 29, 1975 TO DECEMBER 28, 1975 - 2 COMPLÉTE MONTHS AT $3.50 PER MONTH
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7.00
ON $1,000, NOVEMBER 29 1975 TO DECEMBER 28, 1975 - 1 COMPLETE MONTH AT $3,50
3.50
$21.00
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