FBT on low-interest loans down

The interest rate used to calculate fringe benefit tax on low-interest, employment-related loans has dropped from 7.33% to 7.08%, with effect from 1 October 2003. The change 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 down

The prescribed rate to calculate fringe benefit tax for low-interest, employment-related loans has dropped from 7.33 per cent to 7.08 per cent, Revenue Minister Michael Cullen announced today.

The new rate applies from 1 October 2003.

The rate is reviewed regularly in line with the results of the Reserve Bank's regular survey of first mortgage interest rates. It was last changed with effect from 1 July 2003.

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