4.4 million insurance, takaful policyholders to be reimbursed

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PUTRAJAYA: The Finance Ministry today announced tax exemptions for all individual policyholders who had bought or renewed an insurance or general takaful policy for motor, fire or accident insurance during the tax holiday period from June 1 to Aug 31, 2018.

Minister Lim Guan Eng said insurance or takaful companies are required to reimburse any services tax they had charged their policyholders.

“This move is expected to benefit 4.42 million policyholders who will save RM132mil in tax payments,” he said.

Lim said insurance and general takaful policies have been subject to the services tax since Sept 1, 2018.

Under the Service Tax Act 2018, insurance and takaful companies are required to impose a service tax on consumers who purchase or renew their insurance or general takaful policies on or after Sept 1, 2018. - Bernama