By Silvia Nyambura
The Insurance industry in Uganda has condemned government’s imposition of VAT on insurance services in the 2014/2015 budget. According to Deepak Pandey the Chairman Uganda Insurers Association (UIA), this move will stifle penetration in an already struggling sector. Pandey who was speaking at a press briefing held on 23rd June 2014 at the Association’s headquarters in Kampala said the removal of VAT exemptions will make products unaffordable for the consumers.
“Insurance companies will not bear the costs they will just pass it on to the consumers. Infact, we stand to benefit because we can reclaim taxes that we pay for the goods and services we buy. Our biggest concern is the VAT will lower the uptake of insurance as consumers opt to remain uninsured. This means all the effort we have put toward sensitization will come to naught,