Insurance regulators said they are pushing for tax reform in the 17th Congress for the benefit of the non-life insurance industry to promote further growth in the sector.
“So far, I think the new administration will be supportive of some of the legislative initiatives that we shall pursue, including the tax reform for the non-life industry because if we succeed in doing that, I think that will promote the growth in non-life,” Insurance Commissioner Emmanuel Dooc said.
Dooc noted that the Insurance Commission has already redrafted the bill to lower the tax rate on non-life insurance, referring to House Bill (HB) 3235 filed in the previous Congress.
HB 3235 proposed to trim taxes imposed on non-life insurance premiums to as low as 2 percent by exempting them from the 12 percent value-added tax (VAT) plus a documentary stamp tax ranging from P10 to P100 per year.
Dooc added that he is also ready to discuss the measure with Finance Secretary Carlos Dominguez 3rd.
“I requested a meeting with Secretary Dominguez to discuss legislative initiatives that we have in mind,” he said.
“First, the tax for non-life, we are ready to submit to him the draft bill and for him to give us his endorsement so that we can be assured of smooth sailing in both Houses [of Congress],” Dooc added.
In the first quarter of 2016, the non-life sector’s net premium written rose 11 percent to P9.1 billion, while its combined profit slid 39 percent to P518.4 million.