The Philippine Insurers and Reinsurers Association (Pira) has announced plans to continue to lobby for lower tax rates for non-life insurers to ensure the insurance market environment is competitive and sustainable over the long-term, the Business Mirror reported.
The non-life insurance sector is currently taxed at 27.5%, over five times the 5% rate of life insurance business.
A bill aiming to equalise tax rates of life and non-life insurance sectors failed to progress under the previous government.
However, the bill has now been refiled, and Pira Deputy Chairman, Michael F. Rellosa, said; “I am not optimistic but we will not give up the fight.
“We are continuing our lobby, and as a matter of fact, Congressman Quimbo refiled the bill, but if it’s going to progress, that is a different story.
“You see, it goes against the plan of the government. The government wants to fund all these projects. As a matter of fact, they are actually increasing taxes so I don’t think policy speaking, we are going to get it in any ground,” the Business Mirror quoted.
President Duterte has laid out an ambitious economic strategy, known as “Dutertenomics,” which involves raising funds through a tax-reform programme, large-scale infrastructure spending, and social protection, with the aim of growing the Philippines economic output to upper-middle income levels by 2022.
