FBC News 
[File Photo]
Cabinet has today announced a limited 12-month amnesty on all interest for outstanding municipal residential rates.
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.
PM Rabuka says the phase 1 will be effective from 1st January 2023 to 31st July 2023, adding that based on the collection of rates in Phase 1, Phase 2 will then be effective from 1st August 2023 to 31st December 2023.
He says that the government recognizes that owners of residential property face difficulties in paying rates due to reduced household income.
The PM adding that since 2020, the COVID-19 pandemic saw many workers losing their jobs, or working reduced hours, reducing household income.
The Ministry of Local Government will also review the compound interest rate set at 11% and carry out consultations to ensure interest levied is fair to ratepayers.
Stream the best of Fiji on VITI+. Anytime. Anywhere.
