The Financial Express

Insurance association demands withdrawal of 15pc VAT

| Updated: May 09, 2021 22:08:26

Insurance association demands withdrawal of 15pc VAT

The Bangladesh Insurance Association (BIA) has demanded withdrawal of 15-per cent value-added tax (VAT) on reinsurance commission in the 2021-22 fiscal budget.

Addressing a virtual press conference on Thursday, BIA president Sheikh Kabir Hossain also urged the government to reduce corporate tax for the sector to help recoup the pandemic-induced losses.

He said 5.0-per cent advance tax on insurance agents should be paused for two years as the agents are already hit hard by Covid-19.

Mr Hossain said taxes on health insurance should be withdrawn entirely to encourage health policies.

"More people should come under health insurance as the pandemic showed us how important the policies are."

According to Mr Hossain, there is a provision of 5.0-per cent gain tax on the profit of life insurance policies which should go.

This provision should be withdrawn in the next budget to motivate people to open life insurance policies," he said.

BIA first vice-president Nasir Uddin Ahmed Pavel, vice-president AKM Monirul Haque and executive committee member Jalalul Azim, among other, joined the event.

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