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Early day motion tabled by primary sponsor Lord Fearn (Liberal Democrat), on Monday, 2 February 1998, in the House of Commons. It is signed by 68 members in total.

INSURANCE PREMIUM TAX

That this House expresses its concern about the unfairness of applying a higher rate of taxation to travel agents and tour operators selling insurance than that applied to direct insurance companies selling the same product; notes the effect of this higher rate tax on the profit margins of many small, independent travel businesses; further notes the implications of this loss of income for the future viability of these businesses and the impact this will have on local employment opportunities and choice for the consumer; and calls on the Government to remove the distortion by taxing all insurance retailers at the same rate.

Amendments

The Early day motion has received 2 amendments.

716A2
leave out from'distortion' to end and add 'created by the last government, by removing travel insurance sold by travel agents and tour operators from the higher rate of Insurance Premium Tax or including direct insurance companies selling the same product in the higher band.'.
716A1
after 'consumer' insert ' in addition, notes the impact of higher rate Insurance Premium Tax on the electrical rental and retail sector and on the motor vehicle sector; notes with concern government confirmation that higher rate Insurance Premium tax has led to an increase in non-insurance based warranties for motor vehicles and thus lower protection for car owners; further notes that higher rate Insurance Premium Tax has resulted in increased sales of travel insurance packages which do not meet the needs of holiday makers taking activity holidays such as ski-ing holidays; points to the recent Monopolies and Mergers commission reports on the travel industry and electrical retail sales which confirms that tax-avoidance was not taking place in these industries;'.

Secondary information

Type
Early day motion
Reference
716 
716A2 
716A1 
Session
1997-98
Subjects
Insurance companies Insurance premium tax Tax rates and bands Tour operators Travel agents
Link
View this Early day motion on www.parliament.uk