Tax policy not exemption is key for growth of insurance industry

Miriam Magala

What you need to know:

  • Were we to impose compulsory motor insurance as Mr Matsiko proposes, it is critical that the actual cost of the product and the willingness and ability of the market to purchase are taken into account.
  • We have, therefore, taken to proactively lobbying government to reassess the way tax and insurance interact with each other.

In Daily Monitor of February, 19, Mr Kahinga Matsiko wrote an article titled “Developmental legislation, not tax exemption will grow insurance” and quoted me as rooting for tax exemption on insurance services which, according to him, are an essential catalyst to investment and therefore for economic development. Mr Matsiko further proposed that rather than tax exemption, our focus should be on developmental legislation- that is- deliberate legislation aimed at fostering economic transformation through select catalyst economic drivers such as insurance.
To the extent that developmental legislation will be critical to spurring the growth of the industry, I agree with Mr Matsiko and this is a position that we, as an industry, under the Uganda Insurers Association umbrella, are firmly lobbying for and taking it a step further by advocating for a more holistic approach to tax policy.

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