Philippine nonlife insurers seek tax cuts for affordability

The Philippine nonlife insurance industry is advocating for tax cuts to make insurance more affordable, especially for those in disaster-prone areas. Officials are in discussions with the Department of Finance to revisit tax reduction proposals. Currently, nonlife insurance products face tax rates exceeding 27%, while life insurance premiums are taxed at only 2%. The industry has previously agreed on some tax cuts under a proposed bill, but recent amendments have complicated tracking these changes. Nonlife insurance policies incur multiple taxes, including a 12.5% documentary stamp tax and a 12% value-added tax. The industry continues to seek relief amid ongoing fiscal challenges.