Insurance

The Insurance sector recorded a total revenue collection of Rs.11.30 billion in FY 2023-24, showing a notable increase of 11.44% compared to revenue collection of Rs.10.14 billion in FY 2022-23. It maintained its position as the fifth largest sector contributing to tax revenue. Insurance services, including those provided by reinsurers, are categorized under tariff heading 9813.1000 and sub-tariff headings thereof of the Second Schedule to the 2011-Act. Goods, fire, theft, marine, group life insurance and group health insurance are subject to the standard SST rate of 15%.

Through amendments made in the Act, 2011, services provided by insurance guarantees were made taxable in FY 2023-24. Further, exemption on health insurance was also withdrawn from July, 2023.

Life insurance for individuals with coverage of upto five hundred thousand rupees, and crop and marine insurance for export are exempt.