Cabinet has approved the amnesty period on interest payable from ratepayers in arrears.
Prime Minister, Sitiveni Rabuka says the amnesty is intended to facilitate the recovery of principal rates owed by residential rate payers.
This amnesty will be implemented in phases.
Phase 1 will be effective from 1st January 2023 to 31st July 2023.
Rabuka says based on the collection of rates in Phase 1, Phase 2 will then be effective from 1st August 2023 to 31st December 2023.
The Prime Minister says the Government recognises that owners of residential properties face difficulties in paying rates due to reduced household income.
He says since 2020, the COVID-19 pandemic saw many workers losing their jobs or working reduced hours.
Rabuka says the 11 percent 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 inerest rate and carry out consultations to ensure interest levied is fair to ratepayers.
