The National Campaign Against Insurance Premium tax (NCAIPT) has stepped up its campaign for the abo...
The National Campaign Against Insurance Premium tax (NCAIPT) has stepped up its campaign for the abolition of Insurance Premium Tax (IPT) ahead of the March Budget.
The pressure group is concerned that with a General Election looming the Chancellor of the Exchequer may decide to make headline rate cuts and increase public expenditure, but will claw back revenue by increasing the so-called stealth taxes such as IPT.
The NCAIPT is also worried that the tax could increase from 5% to 12.5% after the Budget. Philip Allott, project director at NCAIPT, said: "At the moment we do not appear to have any firm Budget day in the parliamentary diary.
We are deeply concerned that this lack of information over the Budget is a smokescreen to cover up the possibility of further increases in taxes like IPT, which is a back door means of taxation affecting most people who take out an insurance policy. It hits both rich and poor alike, with the greatest effect on those who struggle to pay the basic premiums and are cancelling policies because of the tax levy."
IPT was inherited from the previous Conservative government and despite Labour's pledges to reduce the tax burden, it has not yet managed to cut this tax.
The NCAIPT has been conducting a large scale lobbying campaign among MPs and has already written to each one at least twice. So far the campaign has received support from across the political spectrum, most notably from Conservative leader William Hague and shadow chancellor Michael Portillo, who said: "We will, of course, oppose any further increase in IPT should Labour try to raise tax this way in the forthcoming Budget."
Allott said: "The Chancellor could consider IPT to be an easy target, but if the response we have been getting is anything to go by, there would almost certainly be a big backlash, which could have an effect on the ballot box."
