Use-of-money interest rates fall
Use-of-money interest rates on underpaid and overpaid tax have been lowered in line with changes in the market rates on which they are based, Revenue Minister Peter Dunne announced today.
"The rate charged by Inland Revenue on unpaid tax will be lowered from 9.73% to 8.91%, while the rate for overpayments of tax paid by Inland Revenue will fall from 4.23% to 1.82%," Mr Dunne said.
"Use-of-money interest rates are reviewed regularly so that they reflect current market interest rates. The new lowered rates are based on recent Reserve Bank survey figures, which have fallen since the last adjustments were made to the UOMI interest rates, effective from 1 March. The method of calculating the underpayment rate has also been changed, based on a Reserve Bank index that is more likely to reflect taxpayer borrowing costs."
The new rates apply from 28 June 2009 and were approved by Order in Council today.
Media contact: Mark Stewart 021 243 6985