news
hotel news - New Hotels
150 new luxury hotels
opened in Greece in 2018.
New job
ICCA Board of Directors
selects Senthil Gopinath as incoming CEO.
business intelligence
Calgary’s BMO Convention and Trade Centre
set for expansion.
business intelligence
Berlin 2018 Event Impact Report:
Big benefits to host city.
Business Intelligence
Christian Mutschlechner
oins Congrex Switzerland’s Board of Directors.
Business Intelligence
QODE to crack innovation trends
in Queensland’s vibrant startup sectors.
Legacy Program
Why doing business in Asia
takes more than a single brush strategy.
new meetingplace
Board of Governors approves
Board of Governors approves
Hotel News - New Hotels
The Radisson Collection
Hotel & Suites Paris La Défense Announced.
RSS
rss_icon
Links
Travel insurance premium tax hits record levels
Peter Hayman, Director, at P J Hayman & Company (www.pjhayman.com) (U.K), Specialist Travel Insurance Providers highlighted the rises in VAT and Insurance Premium Tax (IPT) and called for the standardisation of the tax across all forms of insurance.

Said Hayman: “With effect from the 4th January 2011, the Government will be collecting a 20% tax on all travel insurance premiums. The amount of tax matches the VAT rate but is far higher than other types of insurance such as motor and household, which have also seen an increase but only from 5% to 6%. Indeed, many people will not be aware that from a typical £20 premium, £3.33 is taken in tax.

“The higher rate was initially introduced in an attempt to deter Travel Agents from giving holiday discounts on the condition that travel insurance was purchased as part of a package. Sales through the travel trade currently represent less than one fifth of total premiums and therefore such a high level of tax is now an anachronism. "

Concluded Hayman: "There is a danger that this increase in travel insurance premiums will deter travellers from purchasing essential cover. In particular, those most affected are people who have to pay higher premiums due to age, ill health or deciding to take a gap year. We ask that the Government puts this on its list of taxes for review as being unfair and inappropriate.”

Photo: Peter Hayman.

Source: TravelDailyNews.com