Currently, listed insurance companies are paying 37.50% corporate tax
The Bangladesh Insurance Association (BIA) has proposed bringing down the corporate tax rate to 35% for insurance companies for FY20.
Currently, listed insurance companies are paying 37.50% corporate tax.
At a briefing, the organization of private insurance companies, placed a nine-point charter of demands ahead of the placement of budget for FY2019-20 in parliament.
“Insurance business could not expand like banks and other institutions. So I propose that the corporate tax be reduced to 35% for the insurance sectors,” BIA President Sheikh Kabir Hossain said at the pre-budget press briefing at BIA headquarters in Dhaka on Tuesday.
Sheikh Kabir Hossain said that the sales of life insurance policies were on the decline since 2014 when the government imposed 5% gain tax on policy benefits.
He also requested the government to stop dual taxation on the commission earnings of insurance companies’ agents as they paid 15% value added and 5%t income tax on their earnings as commission.
The association also demanded withdrawal of the 5% tax provision on insurance policy benefits of policyholders, 15% value added tax and 5% source tax on agents’ commission.
Insurance company owners say the National Board of Revenue has called for depositing 15% VAT on their agents’ commission and submit it to the treasury through the relevant VAT office, which hits the agents’ livelihood and the country's insurance industry hard.
BIA First Vice-President Rubina Hamid, Vice-President AKM Monirul Hoque and executive member Mozaffar Hossain Paltu, among others, were also present.