Gay Mitchell
Question:105 Mr. G. Mitchell asked the Minister for Finance the purpose of the insurance levy on home insurance policies; the plans, if any, he has to abolish it; and the amount of income derived from the levy annually. [13421/98]
Written Answers. - Insurance Levy.
A levy of 1 per cent was imposed on certain insurance premiums in 1982. This levy was increased to 2 per cent in 1993. The levy is imposed on almost all non-life insurance premiums, the exceptions being reinsurance, voluntary health insurance, marine, aviation and transit insurance and export credit insurance. The yield from this levy in 1997 was £30.5 million. Similar levies exist in most other EU countries and, in general, at rates much higher than 2 per cent. The levy was introduced to broaden the stamp duty base, thereby raising additional revenue. Consequently, at this stage, I have no plans to abolish this levy.