The Neos want the insurance tax for private provision products to be reduced. A corresponding initiative proposal was submitted to the finance committee. A reduction from eleven to seven percent is proposed for short-term, single-premium life endowment insurance policies. The parliamentary correspondence reports that the insurance premium for all other life and disability insurance policies is to be reduced from four to 2.5 percent.
A reduction from 2.5 to 1 percent is required for pension fund contributions. The level of the current tax rates comes from times when the income from such insurance policies compensated for the tax early on. In the current environment of low interest rates, however, hardly any returns are possible with these old-age provision products.
Company pension schemes should also be expanded, within the framework of which companies can invest up to 300 euros in pension products such as life, accident or health insurance for their employees tax-free, i.e. without ancillary wage costs. The Neos want this amount to be raised to 1,200 euros and valorised annually in the future, they say. (eml)
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