Section 5: Rate of interest and exemption

5. Rate of interest and exemption (1) (a) Subject to subsection (2), interest at the rate of 7 per cent per annum for every completed month, commencing on the first day of the month following the date of issue and ending on the last day of the month immediately preceding that in which a certificate is accepted for payment of tax, shall be paid by the Accountant-General on the face value of a certificate so accepted to the extent of such acceptance. (b) Where a certificate is accepted on the last day of a month, interest shall be payable for that month. (2) The President may, by regulations, vary the rate of interest specified in subsection (1), and interest shall be paid at the new rate on any certificate purchased after the date of coming into operation of such regulations. (3) All interest paid in respect of a certificate shall be exempt from payment of income tax. [S. 5 amended by Act 48 of 1991.]