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WCUNCSDAY, FEBRUARY 16, 1977
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INTEREST ON TAX RESERVE CERTIFICATES REDUCED
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THE RATE OF INTEREST PAYABLE ON TAX RESERVE CERTIFICATES WILL BE REDUCED FROM 4.2 PER CENT TO 3 PER CENT PER ANNUM, TAX FREE, AS FROM TOMORROW (FEBRUARY 17).
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.
INTEREST ON TAX RESERVE CERTIFICATES IS CALCULATED IN MONTHLY STEPS AND THE NEW RATE WILL BE 25 CENTS PER MONTH PER $100. INTEREST WILL BE CREDITED AS BEFORE IN RESPECT OF COMPLETED MONTHS BETWEEN PURCHASE AND SURRENDER IN PAYMENT OF TAX.
INTEREST IS ONLY CREDITED 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 WILL APPLY TO ALL CERTIFICATES ISSUED ON OR AFTER FEBRUARY 17, 1977.
CERTIFICATES WHICH WERE ISSUED ON OR AFTER SEPTEMBER 19, 1975 AND BEFORE FEBRUARY 17, 1977, WHEN THE RATE WAS 4.2 PER CENT WILL CONTINUE TO EARN INTEREST AT THAT RATE.
CERTIFICATES ISSUED AFTER 1973 AND BEFORE SEPTEMBER 19, 1975 WILL CONTINUE TO EARN INTEREST AT 5.7 PER CENT, BUT ALWAYS SUBJECT TO THE GENERAL RULE THAT INTEREST CEASES TO ACCRUE AFTER 36 COMPLETED MONTHS WITHOUT SURRENDER FOR PAYMENT OF TAX.
THE FOLLOWING IS AN EXAMPLE OF THE NEW INTEREST RATES :
$1,000 CERTIFICATES PURCHASED FEBRUARY 28, 1977, APRIL 28, 1977 AND JUNE 28, 1977 RESPECTIVELY, SURRENDERED IN PAYMENT OF TAX DUE ON JANUARY 3, 1978, WILL HAVE INTEREST CALCULATED AS FOLLOWS:
ON $1,000, FEBRUARY 28, 1977 TO DECEMBER 27, 1977,
10 COMPLETE MONTHS AT $2.50 PER MONTH .....................
1977 TO DECEMBER 27, 1977,
ON $1,000, APRIL 28,
8 COMPLETE MONTHS AT $2.50 PER MONTH ON $1,000, JUNE 28, 1977 TO DECEMBER 27, 1977,
6 COMPLETE MONTHS AT $2.50 PER MONTH
$25.00
$20.00
$15.00
$60.00
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