Egypt – Effect of added value tax on insurance tackled
Wednesday, 09 21 2016, Category: Insurance and Reinsurance, Country: Egypt
The Insurance Federation of Egypt is studying the negative effects of the added value tax on claims and the ways to control them.
Mr. Ahmed Arfeen, Managing Director of the Egyptian Takaful Insurance Company (Property) and member of the board of the Federation said that a meeting was held by the Federation in order to study the effect on insurance of the added value tax adopted lately by the parliament.
He added that the law exempted insurance and reinsurance services from this tax. However, there are large indirect effects on the sector, which raise the claims volume paid by the sector by 25%, where comprehensive motor insurance represents 15% of the increase and the rest is distributed over other branches.
Source: Al Mal News