FPCCI demands coronavirus tax relief

KARACHI            -            Convener FPCCI Central Standing Committee on Insurance Dr. Murtaza Mughal on Thursday asked the government to increase the budget of health sector in the wake of coronavirus outbreak. He said that all the taxes imposed on health products and services should be waived so that masses can access the same.

Dr Murtaza Mughal said that tax deadlines for some important sector should be extended, penalties should be waived while health insurance should be promoted to enable the poor to get quality services.

Talking to Executive Member of Insurance Association of Pakistan and Director UIC Huma Waheed, he said that FBR should establish a special cell to study the impact of the virus on businesses and taxpayers.

The findings should be used to finalise a corona response package to stimulate the economy, he demaded. He said that awareness about health insurance should be increased as health is the most valuable asset anyone can have.

The companies providing health insurance are focused on urban areas, therefore, government should announce incentives for companies providing services in rural areas, he demanded. He said targeting health insurance sector in the current circumstances will not serve any purpose while double taxation will remain counterproductive. The federal and some provincial governments are increasing taxes on health insurance which will deteriorate this important sector. Government of Punjab has increased tax on marine insurance while the government of Sindh has kept it intact creating issues therefore all provinces should opt for uniform taxation. The incidence of taxes has been increased which should be reduced, he said, adding that the volume of life insurance is just Rs220 billion in a country with a population of over 220 million.


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