Monday, July 24, 2017

Philippines insurers urge tax cut for non-life players

A group of insurance operators in the Philippines is lobbying for the lowering of tax rates for non-life players in the country.

The Philippine Insurers and Reinsurers Association (Pira) said the taxes imposed on non-life firms should be reduced so they will be at par with that of their Asean counterparts and help keep a competitive environment.

Michael Rellosa, deputy chairman of Pira, expressed hope that the proposal will still be considered by the present administration.

Non-life products are presently taxed 27.5%, comprising a 12% value-added tax, a 12% documentary stamp tax, a 2% fire service tax, and a rate between 0.15% and .75% for local government tax.

In contrast, life insurers in the Philippines are only taxed at 5%.

In the previous administration, a proposal to lower non-life taxes was pushed, but it was not signed before the term of then President Benigno Aquino ended.

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