Insurance

The Insurance sector recorded a total revenue collection of Rs. 10.15 billion in FY 2022-23, showing a notable increase of 17%. It maintained its position as the fifth largest sector contributing to tax revenue, consistently being among the top 10 revenue-generating sectors. In the previous FY 2022-23, the sector contributed Rs. 8.67 billion.

Services provided by insurers, including reinsur- ers, in the field of insurance, fall under tariff heading 9813.1000 of the Second Schedule to the 2011-Act. Goods, fire, theft, and marine insurance are subject to the standard SST rate of 13%. Whereas, life insurance is chargeable to SST at reduced rate of 3%. Health insurance and marine insurance for export remained exempt from SST during FY 2021-22.

The services offered by insurance agents or brokers are chargeable to SST under tariff heading 9855.0000 of the Second Schedule to the 2011-Act at a reduced tax rate of 5%.