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UK insurers warn against ‘inexcusable’ tax jump

The Association of British Insurers (ABI) has urged the Government not to increase the insurance premium tax any further as it tries to balance its budget.

The association is launching a follow-up to its #IPTsUnfair campaign against insurance tax rises. The UK has the sixth-highest insurance premium tax in Europe. The standard rate increased three times between November 2015 and June last year, from 6% to 12%.

The tax applies to most policies across property, motor, health, pet and business lines.

The Social Market Foundation estimates it will cost households an average of £200 ($371.62) this year.

ABI Director-General Huw Evans says further punishing people who buy insurance is inexcusable.