MacDonald Requests Interest Rate Reduction – “People Before Profits”
Large interest charges on overdue property tax bills should be reduced immediately, says Liberal Finance Critic Heath MacDonald.
“Many Islanders continue to cope with a high degree of uncertainty – adding sky-high interest charges to property tax bills only adds to that anxiety,” MacDonald said.
Right now, the province is charging 18 per cent interest on any late bills.
“Even during a normal time, this rate of interest is far too high – especially since the prime rate is less than 2.5 per cent."
“A pandemic is no time for government to put profits before people.”
MacDonald said a more appropriate rate for late property taxes is probably about four per cent.
“After the province allowed property owners to defer property taxes, it was clear that a number of Islanders would struggle to catch up. These are conscientious people who want to pay – but legitimately wonder why they have to pay so much interest to keep up with their responsibilities.”
Office of the Third Party