The government should slash the onerous tax of 26 percent to 27 percent on nonlife and agriculture insurance premium, an agri-finance expert said, stressing that the current policy hinders the entry of cash-rich private sector investors that can significantly accelerate rural farm activity through financing.

In a webinar hosted by the Southeast Asian Regional Center for Graduate Study and Research in Agriculture (Searca), Jaime Aristotle Alip said tax on nonlife insurance, including those for crop or agriculture insurance, should be around the rate of life insurance, which is only at a minimal 2 percent. Other nonlife insurance with high tax are disaster insurance and health insurance, he added.