Service Tax Revision from 6% to 8% Effective 1 March 2024

Dear valued policyholder,

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Following the national fiscal (Budget 2024) announcement, the proposed Service Tax (ST) rate will be increased from the current rate of 6% to 8% with effect from 1 March 2024, on all taxable services including the insurance sector.

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At this point, Generali Insurance Malaysia Berhad (“the Company”) has outlined a tentative approach to the proposed increase in ST, pending further clarifications and implementation guidelines from the relevant Ministry and the Royal Malaysian Customs Department.  

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During this period, the Company reserves the right to update or modify the information as deemed necessary.

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1. All Policies:  

All renewal and new policies transacted on or after 1 March 2024, with an inception date on or after 1 March 2024, will be subject to ST at the rate of eight percent (8%).

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2. Renewal Notices:

Please note that the ST rate will be adjusted to the existing rate once the relevant order is gazetted as law.  

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Additionally, the Company reserves the right to revise and collect an amount equivalent to the increase in ST payable on the applicable premium for those policies issued where the policy period commences before 1 March 2024 but expires after 1 March 2024 on a proportional basis for the period of cover from 1 March 2024 onwards, where the implementation of the 8% ST rate will be applicable.

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Should you have any further enquiries, please do not hesitate to contact our authorised agents, business partners or Generali Customer Service Officer at +603 2170 8282 (Monday to Friday 8:30am to 5:30pm excluding public holidays), or email us at [email protected].