FINANCE Minister Trevor Manuel has reduced interest rates on outstanding tax, excise duties and VAT, with effect from March 1. The South African Revenue Service said in a statement on Tuesday that interest charged on tax not paid by the prescribed date of payment will fall from 14,5% to 13% a year. The interest rate at which SARS will pay taxpayers on provisional tax refunds would drop to 9%, from 10,5%. The rate for refundable VAT will fall to 13%, from the current 14,5% a year.