Interest rates for defaulting ratepayers have been reduced from 11 per cent to 5 per cent.

In Parliament last week, Minister for Local Government Maciu Nalumisa said this was part of the ministry’s review of the Local Government Act.

“We have reviewed the Local Government Act in terms of reducing the default interest rates on the accrued general rates from 11 per cent to 5 per cent,” said Mr Nalumisa.

“It also changed the methodology from compound interest rate to simple interest rate.

“This is, indeed, a great relief for defaulting ratepayers who have difficulty in repaying their current dues, as well as their arrears.”

He said other legislations being reviewed included the Town and Country Planning Act 1946 and the Subdivision of Land Act 1937.

“Work is also underway for the review and amendment of the Town Planning Act to reflect the proposed changes that have been undertaken.”