Speaking at an event on Friday, Fiscal Reps' founder and chief executive Mike Stalley told market representatives: "Since the start of the financial crisis we have been warning insurers that European governments would increase their focus on indirect taxation to fund budget shortfalls. Now the promised changes are upon us and in the coming year we will see significant insurance premium tax and parafiscal tax changes right across the continent.
"From 1 January onwards, a swathe of countries will raise indirect tax rates, introduce new taxes or revise laws to increase the size of the tax base. And with these changes comes clear evidence of a tightening up of tax revenue collection measures", he added.
Joseph Finbow, client manager at Fiscal Reps, added: "The Netherlands and Finland will be first to push up IPT rates in the New Year. Meanwhile, Greece is increasing the rate of its Motor Guarantee Fund.
"Anticipated new taxes in 2013 include Denmark's introduction of IPT in January to replace stamp duty on premiums, a possible flood levy in the UK and the potential introduction by Hungary of IPT to replace its Fire Brigade Tax. In addition, we are seeing countries like Germany, Spain and Iceland rewriting their tax legislation. This is a lot of change for insurers to contend with.
"However, these developments are not the end of the story - even more tax changes are likely in the months and years ahead, as cash-strapped governments go in search of fresh revenue sources", Finbow continued.
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