Government urged to cut ‘unfair’ Insurance Premium Tax

Sunday, 06 Jul, 2009 0

A call has gone out to government to cut the 17.5% Insurance Premium Tax payable on travel insurance.

Specialist travel insurance firm P J Hayman claims travel insurance customers are being unfairly penalised.
 
The company argues that the IPT rate was initially introduced in an attempt to deter travel agents from giving holiday discounts on the condition that travel insurance was purchased as part of a package.
 
This forced customers to pay more for their travel insurance and use a specific provider.
 
But the rate is not only 2.5% higher than VAT but is 12.5% higher than for other types of insurance such as motor or household.
 
Company director Peter Hayman said: “It is important that the government reassesses the level of Insurance Premium Tax.
 
“Sales through travel agents and tour operators have been on the decline for many years and now represent less than 25% of the total market which means that there is now an unfair tax on travellers.
 
“With VAT currently at 15%, it makes no sense at all for IPT to be such a shockingly high rate.”
 
by Phil Davies


 

profileimage

Phil Davies



Most Read

Vegas’s Billion-Dollar Secrets – What They Don’t Want Tourists to Know

Visit Florida’s New CEO Bryan Griffin Shares His Vision for State Tourism with Graham

Chicago’s Tourism Renaissance: Graham Interviews Kristin Reynolds of Choose Chicago

Graham Talks with Cassandra McCauley of MMGY NextFactor About the Latest Industry Research

Destination International’s Andreas Weissenborn: Research, Advocacy, and Destination Impact

Graham and Don Welsh Discuss the Success of Destinations International’s Annual Conference

Graham and CEO Andre Kiwitz on Ventura Travel’s UK Move and Recruitment for the Role

Brett Laiken and Graham Discuss Florida’s Tourism Momentum and Global Appeal

Graham and Elliot Ferguson on Positioning DC as a Cultural and Inclusive Global Destination

Graham Talks to Fraser Last About His England-to-Ireland Trek for Mental Health Awareness

Kathy Nelson Tells Graham About the Honour of Hosting the World Cup and Kansas City’s Future

Graham McKenzie on Sir Richie Richardson’s Dual Passion for Golf and His Homeland, Antigua
TRAINING & COMPETITION
Skip to toolbar
Clearing CSS/JS assets' cache... Please wait until this notice disappears...
Updating... Please wait...