Announcements
PUBLISHED 20 August 2002

FBT rate for low-interest loans to rise

The interest rate used to calculate fringe benefit tax for low-interest, employment-related loans is to increase to 7.98% from 1 October 2002. The increase was approved by Order in Council yesterday. For more information see the government's media statement.


Hon Dr Michael Cullen
Minister of Revenue

MEDIA STATEMENT

FBT rate for low interest loans up

The prescribed rate of interest used to calculate fringe benefit tax for low-interest, employment-related loans will increase on 1 October from 7.5 percent to 7.98 percent, Revenue Minister Michael Cullen announced today.

The rate, which last changed on 1 July this year, is reviewed regularly to align it with the results of the Reserve Bank's survey of first mortgage rates.

Contact: Patricia Herbert [press secretary] 04-471-9412 or 021-270-9013. E-mail: [email protected]