SOUTH AFRICAN REVENUE SERVICE
MEDIA RELEASE NUMBER 10 OF 1998

20 NOVEMBER 1998

INCREASE IN THE RATES OF INTEREST PAYABLE IN TERMS OF THE INCOME TAX ACT, 1962, AND THE VALUE-ADDED TAX ACT, 1991

In view of the increase in all interest rates, it is considered desirable that the rates prescribed in the definitions of -

• "prescribed rate" in section 1 of the Income Tax Act, 1962;
• "official rate of interest" in paragraph 1 of the Seventh Schedule to the Income Tax Act, 1962; and
• "prescribed rate" in section 1 of the Value-Added Tax Act, 1991,

It is hereby notified for general information that in terms of Government Notice No. 19496 published today, 20 November 1998, the Minister of Finance, Mr T A Manuel, has increased with effect from 1 December 1998 the rate prescribed in -

• paragraph (a) of the definition of "prescribed rate" in section 1 of the Income Tax Act, 1962, from 12 per cent to 14 per cent and the rate prescribed in paragraph (b) of the said definition from 15 per cent to 19 per cent;
• the definition of "official rate of interest" in paragraph 1 of the Seventh Schedule to the Income Tax Act, 1962, from 16 per cent to 19 per cent; and
• paragraph (a) of the definition of "prescribed rate" in section 1 of the Value-Added Tax Act, 1991, from 1,2 per cent to 1,6 per cent and the rate prescribed in paragraph (b) of the said definition from 16 per cent to 18 per cent.

Government Notice No. 19496 is also available on SARS Online at www.sars.gov.za.

ISSUED BY THE COMMISSIONER FOR THE SOUTH AFRICAN REVENUE SERVICE
PRETORIA