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The Uganda Insurance Association said the recent tax proposals for the financial year 2014/2015 would raise the total cost of insurance and hinder the sector's growth, The Observer reported.
Deepak Pandey, chairman of the association, said the country's insurance penetration is among the lowest in the world, and "the introduction of an additional 18% cost as Value Added Tax on insurance" would affect it further.
The insurance market rose by 30% in 2013, with gross premium totaling 456.86 billion Ugandan shillings ($175.4 million), the Insurance Regulatory Authority said.
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