Insurance Premium Tax
The question
To ask the Chancellor of the Exchequer, what assessment she has made of the potential impact of insurance premium tax on the cost of car insurance; and whether she plans to increase insurance premium tax.
Answered by Dan Tomlinson
Last year, we established a cross-government motor insurance taskforce with a strategic remit to set the direction for UK government policy, identifying short- and long-term actions for departments that may contribute to stabilising or reducing car insurance premiums. The taskforce's final report will be published in the autumn.
Insurance pricing is a decision which is affected by a wide range of factors, and the taxes that insurers pay are just one part of this. There is additionally no guarantee that any reductions in IPT would be passed on to consumers.
We keep all taxes under review and the Chancellor makes decisions at Budgets in the context of the overall public finances
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