PAYE exemption threshold will boost insurance sector -IAZ

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Chikwanda’s budget ready today
Chikwanda’s budget ready today
THE Insurance Association of Zambia (IAZ) has said the increase in the Pay–as-you -earn (PAYE) exemption threshold from K2,200 to K3,000 in the 2014 National Budget will help grow the insurance and other sectors.

Reacting to the 2014 National Budget which was announced last Friday, IAZ president Shipango Muteto said the increase in the PAYE exemption threshold would increase workers’ access to insurance policies.
“The 2014 National Budget is progressive especially on the issue of Pay-as-you -earn, it has been a challenge for most workers to buy premiums because after paying tax they used to be left with little money but now that the threshold has been increased, a lot will be buying premiums,” Mr Muteto said.
On the increase of the allocation of funds to road infrastructure from about K4.5 billion this year to K5.126 billion for 2014, Mr Muteto said road construction would boost business for the insurance sector.
Mr Muteto observed that most of the road contractors were buying insurance premiums from insurers outside the country which he said was impacting negatively on the growth of the sector.
He said IAZ expected players in the sector to be awarded tax incentives in the 2014 National Budget  to grow the industry from the current  five per cent to 10 per cent of insurance policy holders.
Mr Muteto said the cost of health and medical attention in the country was too high and the 2014 Budget should address that, saying the Government should consider introducing compulsory insurance.
And the lack of awareness on the benefits of insurance has been cited as one of the challenges inhibiting the growth of the industry in Zambia.

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