A planned increase to the Insurance Premium Tax (IPT) announced in George Osborne’s 2015 Budget is being opposed, with 87 per cent of motorists calling it “unfair” as policies are set to rise, the AA has found.
The AA conducted a survey of almost 30,000 drivers, with almost nine out of ten believing it is an unfair tax, which they feel may promote attempts by motorists to drive uninsured. The tax rise was believed to be justified by 11 per cent of respondents.
The AA is calling for the Chancellor to rethink the decision, which will see the IPT rise from 6 per cent to 9.5 per cent from November. It is also informing the Treasury about its findings.
“That premiums have been falling seems to be the Chancellor’s justification for the tax increase but he is wrong,” said Janet Connor, AA Insurance’s managing director. “His timing couldn’t have been worse; not only are premiums starting to rise but the tax can only lead to even greater premium increases than could otherwise be expected over coming months. There is no justification for this underhand and unfair tax increase.”