Industry voices worries over VAT rise
Following the rise in the rate of Value Added Tax (VAT) and insurance premium tax (IPT) Peter Hayman, director at travel insurance specialist P J Hayman, has called for the standardisation of tax across all forms of insurance.
He said: "With effect from 4 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%."
He warned that there is a danger the increase will deter travellers from purchasing the cover and called on the Government to review the "unfair and inappropriate tax".
Meanwhile more than 70% of small
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