Emergency budget threatens 5% IPT rate
The likelihood that tax rises included in this month’s emergency Budget will embrace Insurance Premium Tax (IPT) has prompted the British Insurance Brokers’ Association (BIBA) to warn that such a move would prove counter-productive.
The IPT rate currently stands at 5% and according to BIBA, a rise would only discourage recession-weary individuals and small firms from taking out adequate and appropriate cover.
The Association therefore claims that an IPT hike would result in a net loss to HM Treasury because insurance protection allows the economy to operate and grow.
BIBA chief executive, Eric Galbraith, explains: “A healthy insurance sector helps drive a healthy economy, avoiding further increases to IPT is a key way to ensure stability and assist the UK’s economic recovery.”
He adds: “Our research last year demonstrated that businesses and consumers were reducing insurance cover as a result of the recession and we are concerned that increases to insurance premiums as a result of IPT could lead to even further underinsurance or even a lack of insurance protection.”
Category: BIBA News, Insurance News
Visited 2013 times, 1 so far today
Comments (0)
Trackback URL | Comments RSS Feed
There are no comments yet. Why not be the first to speak your mind.