§ Mrs. Beckett
To ask the Chancellor of the Exchequer what plans he has to change the rate of insurance premium tax during this Parliament.
§ Sir John Cope
[holding answer 22 February 1994]: The Government have announced a package of proposed changes to the insurance premium tax provisions of the Finance Bill, designed to simplify the operation of the tax, mainly in response to representations made by the insurance industry. As part of that package it is proposed to tax gross premiums, inclusive of commission, at 2.5 per cent. rather than net premiums at 3 per cent. This change means that the total yield and the impact of the tax remain broadly the same as originally forecast.