KUALA LUMPUR, Dec 19 ― The Finance Ministry has announced an exemption to all policy holders who renewed or purchased personal insurance or general takaful policies during the tax holiday which took place between June 1 and August 31 this year.
In a press statement today, Finance Minister Lim Guan Eng said these exemptions include premiums for motor insurance, fire, and accidents when the Goods and Services Tax (GST) was zero-rated prior to the reinstatement of the Sales and Services Tax (SST) system.
“If an insurance or takaful company has charged service tax on policy holders, they have been asked to return the service tax charged to the policy holders.
“This move is expected to benefit 4.42 million policy holders and will save them from collectively paying RM132 million in taxes,” said Lim.
The minister was addressing this matter due to questions being raised on whether or not the 6 per cent SST should be charged to policy holders during the tax holiday timeframe.
Personal insurance and general takaful policies were taxed for their services starting September 1, 2018.
