news
GDS-movement
Lima celebrates its 486th anniversary
and announces the development of a long-term strategy that will revitalise its tourism and business sector.
UNWTO Yesterday
IATA hints
at vaccination requirement to fly internationally.
Fourth Industrial Revolution
MCI transforms
for the digital age.
latest research
Innovation network
“Future Meeting Space”: digital event on 22 February.
connectivity
Emirates expands its operations
in the Americas in line with increased passenger demand.
PRESSTOPPRESSTOP
IMEX in Frankfurt 2021
is cancelled.
hotel news Sweden
Scandic Arlandastad opens its doors
with Scandinavian XPO international meeting and event center as its neighbors.
hotel news
Built in a former prison
Hotel Kakola boasts a fascinating history.
creative new offering
Hybrid City Alliance
recognises growth in multi-hub meetings and conferences.
World Economic Forum
Special Annual Meeting 2021
to Take Place in Singapore in May.
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