Cabinet approved a 12-month amnesty period on interest payable from residential ratepayers in arrears.
In a Post-Cabinet Press Conference, Rabuka said the amnesty is intended to facilitate the recovery of principal rates owed by ratepayers and the amnesty will be implemented in phases.
Rabuka said the Government recognises that owners of residential property face difficulties in paying rates due to reduced household income; since 2020, the COVID-19 pandemic saw many workers losing their jobs or working on reduced hours, reducing household income.
“The 11 per cent compound interest rate applied annually under the Local Government Act increases difficulties faced by ratepayers.”
The Ministry of Local Government will also review the compound interest rate set at 11 per cent and carry out consultations to ensure interest levied is fair to ratepayers.