Uganda Insurers' Association
Tel : +256 414 230469/ +256 414 500945/6
Fax: +256 414 500944
Website: www.uia.co.ug
Location: Insurers House Plot 24A, Acacia Avenue, Kololo, Kampala. Uganda Address: P.O. Box 8912 Kampala Uganda
The government’s move to scrap tax exemption is viewed by the Chief Executive Officer of Uganda Insurers Association, Ms Miriam Magala, as a move that will cripple the sector’s growth since insurance product buyers are already burdened with taxes introduced in the financial year 2013/4.“As you will appreciate, the recent increment in stamp duty from Shs5,000 to Shs35,000 in 2013 significantly increased the cost of insurance and negatively affected the uptake of insurance services. The quick imposition of VAT in 2014 will further increase the final cost borne by a consumer who is still grappling with the significantly increased cost to begin with,” Ms Magala said.However, finance spokesperson Jim Mugunga, in an e-mail to Prosper magazine, said government scrapped tax exemptions across sectors and insurance is not exceptional.“The government removed tax exemptions last year across sectors and not necessarily targeted at only insurance. This policy, unless revoked, remains operational because we believe that exemptions had served the purpose for which they were initially allowed but it was also intended to curtail associated abuse,” Mr Mugunga said. Read more 'Banks can sell insurance' The intended move to allow commercial banks to sell insurance products will boost insurance penetration levels, Mr Elvis Khisa, the Insurance Institute of Uganda chief executive officer, said bancassurance – a process of selling insurance products by banks – will be key in the growth of Uganda’s insurance numbers. Read more ▪ |