CIIN President calls for amendment of law on multiple taxation

CIIN President calls for amendment of law on multiple taxation

NEWS DIGEST – President of the Chartered Insurance Institute of Nigeria, CIIN, Mrs Funmi Babington-Ashaye spoke on the need for amendment of law so that insurers can be relieved of multiple taxation.

The President, who spoke in an interview with journalists, identified how multiple taxation on insurance companies have contributed immensely to the delay in claims settlement witnessed in the industry.

Also in the Nigerian insurance industry, operators are demanding an amendment of the country’s tax laws saying multiple taxation being imposed on their businesses are hindering prompt claims settlement.

Chairman of Nigerian Insurers Association, NIA, Mr. Eddie Efekoha said, “Because of the many taxes we pay, returns to stakeholders diminish eventually. We have been paying taxes on claims as well as on management expenses, aside from the tax we pay on profit.

What it then means is that prompt claims settlement will be near impossible and there will be nothing left to pay dividend to shareholders. So we need to tackle this issue of taxation so that our industry and our business can be on the right path.

“Some of our member companies have been visited by agents of Federal Inland Revenue Service, FIRS, to demand for tax and in the process some insurance companies were sealed up. As an association, we have an obligation to promote and protect members. We also have a duty to intervene with the FIRS on the issue of tax.” He said

“Our position is to get the enabling Act amended but it takes time to amend an Act knowing that it has to go through the National Assembly. However, while the process of trying to amend the Act is ongoing, the current leadership of FIRS has been very helpful and very accessible.

So we have some understanding on how to pursue this and that has reduced the activities of the agents. We are still at it until we have the act amended.