Good day Valued Broker,
Important note about the impact of VAT increase on premiums
On Wednesday, 21 February 2018, Finance Minister Malusi Gigaba presented the annual Budget Speech in the National Assembly. The main element of his speech that impacts your plan is the first rise in the value-added tax (VAT) rate since 1993, from 14% to 15%. This increase is effective 1 April 2018.
As a result of this legislated increase, your premium will increase effective 1 April 2018. Sums insured, limits and excesses will not be affected. It remains your clients responsibility to ensure that they are adequately insured. Please advise your clients accordingly.
A detailed policy schedule reflecting the changes will be available shortly.
Thank you for your continued support. If you have any questions, please contact your broker consultant.
Insurance Underwriting Managers.