XN000022-1974-06-14 — Page 5

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FRIDAY, JUNE 14, 1974

HIGHER SURCHARGE FOR LATE PAYMENTS OF RATES

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RATE PAYERS WHO DO NOT SETTLE THEIR BILLS ON TIME MAY BE LIABLE TO PAY UP TO 15 PER CENT MORE IF NEW DRAFT LEGISLATION IS ACCEPTED.

THE PROVISION IS CONTAINED IN THE RATING (AMENDMENT) BILL 1974, PUBLISHED IN TODAY'S GAZETTE, WHICH SEEKS TO IMPLEMENT ONE OF THE PROPOSALS MADE BY THE FINANCIAL SECRETARY IN HIS LAST BUDGET SPEECH.

THE BILL EMPOWERS THE COLLECTOR OF RATES TO IMPOSE A FURTHER SURCHARGE OF UP TO 10 PER CENT OF ANY AMOUNT OF RATES IN DEFAULT SIX MONTHS AFTER THE DUE DATE OF PAYMENT. IN ADDITION TO THE ORIGINAL FIVE PER CENT SURCHARGE.

IT IS INTENDED THAT THE PROVISION SHOULD COME INTO EFFECT ON AUGUST 1 THIS YEAR.

A GOVERNMENT SPOKESMAN EXPLAINED TODAY THAT THE AIM OF · THE AMENDMENT WAS TO DISCOURAGE THE LATE PAYMENT OF RATES.

+AS THE FIVE PER CENT SURCHARGE NOW PERMITTED UNDER' THE ORDINANCE HAS NO TIME LIMIT, DEFAULTERS HAVE NO INCENTIVE NOT TO WAIT UNTIL THE LAST POSSIBLE MOMENT BEFORE PAYING, + HE SAID.

+IN OTHER WORDS, A DEFAULTER CAN DEFER PAYMENT FOR AS LONG AS POSSIBLE AND PAY JUST A FIVE PER CENT SURCHARGE WHEN HE DOES EVENTUALLY SETTLE HIS RATE BILL.+

HE NOTED THAT AT THE END OF MARCH THIS YEAR, RATES AND SURCHARGE IN DEFAULT FOR MORE THAN SIX MONTHS AMOUNTED TO $3.3 MILLION.

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