Taxing insurance pay a threat to economy

The government wants to introduce value-added tax (VAT) on insurance services. FILE PHOTO | SHUTTERSTOCK

The intention to tax insurance payouts at 16 percent is yet another controversial proposal the government has made to apply in the new year starting July.

Among others, experts are warning this will undermine the push to grow insurance in a market where penetration stands at less than three percent to the Gross Domestic Product.

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Note: The results are not exact but very close to the actual.