Sunday, February 19 2006 10:41 Hrs (IST) - World Time -

Bangkok: Ahead of the budget, global insurance giant Max New York Life has demanded changes in tax laws especially Fringe Benefit and Service Tax and more incentives for the booming Indian insurance sector.

"We hope India's Budget (2006-07) would see some changes with respect to Fringe Benefit Tax and Service tax, which is acting as an disincentive to the growth of the life insurance industry," Max New York Life Managing Director and CEO Gary R Bennett told reporters here.

He also said that his company was looking at India's pension sector but was critical of the draft Pension Fund Regulatory and Development Authority Bill which has been cleared by Parliamentary Standing Committee.

He regretted the Opposition of the Left Parties to opening up the pension sector and feared this may delay the passage of the PFRDA bill in Parliament.

Bennett said the government should incentivise and not penalise the contributions to an important wealth accumulation like pension and should revisit the tax laws in this regard.

Painting a rosy picture about India in the face of a high economic growth, he described the economy as a 'heaven' for global players, especially in the insurance sector.