Concerns have surfaced over the potential adverse impact on insurance companies if certain provisions of the proposed Tax Reform Bill are left unaddressed, according to a commentary.
Mr Ade Adesokan, in an article published by the newspaper Vanguard, notes that industry stakeholders, represented by the Nigerian Insurers Association (NIA), argue that taxing Gross Premium Income fails to consider the operational realities of insurance firms.
The association’s chairman, Mr Kunle Ahmed, has strongly voiced the position that GPI does not represent actual revenue earned by insurers. Rather, it includes funds that are temporarily held by insurance firms, which may eventually be paid out as claims or reserves. The industry insists that basing tax calculations on this gross figure will lead to excessive financial strain, weakening insurers and their ability to fulfill obligations to policyholders.
Nonetheless, the industry acknowledges the necessity of progressive tax policies that support national development.
The NIA urges lawmakers to create a tax structure that is aligned with the realities of insurance operations—ensuring that while the government achieves its revenue-generation goals, the financial health of insurers is safeguarded.
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