Insurance agent commission

BIA for withdrawal of 15pc VAT

Bangladesh Insurance Association (BIA) has demanded withdrawal of 15 per cent VAT on the insurance agent commission in the budget for fiscal year 2018-19 (FY19) for the expansion of insurance industry, reports BSS.

“There is 15 per cent VAT at source on agent commission that has been affecting the insurance industry . . . this VAT should be withdrawn for the expansion of insurance business,” said BIA president Sheikh Kabir Hossain at a press conference in the capital yesterday.

He said the commission agents get from insurance companies is their income and they pay 5 percent tax on it. But if 15pc VAT is imposed on their income again it is equivalent to double tax, he added.

Hossain also said all listed companies are paying corporate tax at a rate of 25 percent but the listed insurance companies are paying corporate tax at a rate of 40 percent. He demanded reduction of the corporate tax for the listed insurance companies.

Terming the imposition of VAT on the premium of re-insurance as illogical, he said insurance companies collect 15 percent VAT while receive premium from clients and deposit it in the government exchequer and a part of this premium is given to the re-insurers. So, there is no scope to impose VAT on the premium of re-insurance, he added.

He also demanded withdrawal of 5 percent gain tax from the policy bonus of life insurance policy-holders.

 

Insurance agent commission

BIA for withdrawal of 15pc VAT

Bangladesh Insurance Association (BIA) has demanded withdrawal of 15 per cent VAT on the insurance agent commission in the budget for fiscal year 2018-19 (FY19) for the expansion of insurance industry, reports BSS. There is 15 per cent VAT at source on agent commission that has been affecting the insurance industry . . . this VAT should be withdrawn for the expansion of insurance business, said BIA president Sheikh Kabir Hossain at a press conference in the capital yesterday. He said the commission agents get from insurance companies is their income and they pay 5 percent tax on it. But if 15pc VAT is imposed on their income again it is equivalent to double tax, he added. Hossain also said all listed companies are paying corporate tax at a rate of 25 percent but the listed insurance companies are paying corporate tax at a rate of 40 percent. He demanded reduction of the corporate tax for the listed insurance companies. Terming the imposition of VAT on the premium of re-insurance as illogical, he said insurance companies collect 15 percent VAT while receive premium from clients and deposit it in the government exchequer and a part of this premium is given to the re-insurers. So, there is no scope to impose VAT on the premium of re-insurance, he added. He also demanded withdrawal of 5 percent gain tax from the policy bonus of life insurance policy-holders.