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ISLAMABAD: The chief executive officers of Pakistan’s leading insurance companies urged Finance Minister Muhammad Aurangzeb on Monday to restore and reinstate income tax credits for insurance to support the sector.
The delegation presented to the finance minister and his team key proposals and suggestions to boost the insurance sector’s growth and productivity.
The meeting at the finance division was also attended by senior government officers.
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The CEOs’ delegation called reforming capital gains and dividend taxations and sought minimum turnover tax exemptions. They also advocated for centralised insurance taxation to ensure consistent treatment and eliminate double taxation at the provincial level.
Aurangzeb assures CEOs their proposals will be considered
An official announcement issued after the meeting said the finance minister assured the CEOs that the government would carefully consider their proposals, particularly regarding taxation and policy measures necessary for the future growth of the industry.
Mr Aurangzeb highlighted that the consultative process for the upcoming federal budget had been deliberately advanced this year, adding that over 90 per cent of the process had already been completed, with recommendations, proposals and suggestions received from various stakeholders, including the insurance sector.
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The minister reaffirmed the government’s commitment to supporting the insurance sector, recognising its potential for significant private sector investment. He noted that the government seeks to diversify beyond the banking sector for lending purposes, urging the insurance industry to step up and meet the growing demand.
This includes expanding the sector by focusing on innovation, enhancing productivity and driving further growth.
The minister assured the delegation that the government would continue to work closely with industry leaders and stakeholders to ensure long-term prosperity of the insurance sector, which is a vital component of Pakistan’s economic landscape.
The discussion focused on the growth of the insurance sector and its contributions to the national economy, with a particular emphasis on its impact on the health system, investments in Pakistan Investment Bonds, capital markets and long-term investment opportunities.
The delegation’s presentation also highlighted the current statistics of the industry, which boasts assets worth Rs2.900 trillion, alongside 20,000 direct and 234,000 indirect employments. The sector’s contributions were underscored, with Rs613 billion in gross written premiums and Rs373bn in claims paid to date.
The finance minister emphasised that a team of experts at the Federal Board of Revenue is diligently reviewing each proposal submitted by different sectors, ensuring that the impact on the economy and revenue is thoroughly evaluated. This process aims to develop realistic and actionable policy interventions that will foster the growth of the industry and critical sectors of the economy, added the announcement.
Published in Dawn, March 11th, 2025