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FBT interest rate for low interest loans drops

26 November 2001 Media Statement

FBT interest rate for low interest loans drops


The prescribed rate of interest used to calculate fringe benefit tax for low-interest, employment-related loans has dropped from 7.69 percent to 7.19 percent, Revenue Minister Michael Cullen announced today.

The new rate applies from the quarter beginning 1 October 2001.

The rate is reviewed regularly to ensure it is in line with the results of the Reserve Bank's regular survey of first mortgage interest rates.

ENDS


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