The Securities and Exchange Commission of Pakistan (SECP) has strongly proposed exemption of sales tax from health and life insurance on permanent basis. The SECP Annual Report (2019) issued here on Friday disclosed that the SECP had taken up the issue of imposition of sales tax on life and health insurance with the provincial revenue authorities.
From June 30, 2018 onwards, the Sindh Revenue Board withheld exemption from sales tax on life and health insurance, while Punjab Revenue Authority (PRA) also levied sales tax on these segments.
These measures were perceived as counterproductive for growth of insurance industry.
The industry association raised the issue with the SECP Policy Board and submitted a proposal to exempt life and health insurance from sales tax.
The SECP took up the matter with the provincial governments and subsequently the Sindh Revenue Board issued notification to exempt life and health insurance from sales tax until June 30, 2018.
Efforts are underway to obtain exemption on a permanent basis, the SECP added.
To further facilitate company registration, the SECP plans to establish business centres in Karachi, Lahore and Islamabad, exclusively for company registration services.
Introduction of digital certificate of incorporation, extension of one-window facility for company registration to other provinces, and integration with the FBR for sales tax registration is also on the SECP agenda.
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