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The Insurance Council of Australia (ICA) has added its voice to calls for state governments to reduce the high rates of tax they levy on insurance premiums. In a submission to the Senate inquiry, ICA president Raymond Jones – also head of QBE Insurance's local operations – calls for a reassessment of taxes on insurance premiums, claiming they represent around 20% of the amount paid by policy holders. This view has been backed by other industry bodies, including the Institute of Chartered Accountants, which labels the tax levels "unconscionable" – especially the fact that GST is levied on the stamp duty-inclusive price in most states. Yesterday, Commerce Queensland president Graham Heilbronn estimated Queenslanders pay about $2 billion in insurance premiums, including about $10 million to the government from the stamp duty it charges on the GST component. "Skyrocketing insurance premiums are providing a windfall to the state government, which is pocketing more than 1% for every 20% increase in premiums," he says. "To add insult to injury, the Beattie government seems to have turned its back on business after promising them plenty and delivering very little in practical help during the current public liability insurance crisis. "While the Premier has been crowing about what a success his government's reforms are, the reality is nothing has changed for Queensland business, particularly small business. "Many business operators are still having to pay exorbitant public liability premiums, can't get any cover at all or in some extreme cases may have to shut up shop." The ICA's Jones warns that if major reform does not occur to tort and taxation arrangements, insurers - which estimate they lost $2.3 billion in public liability and professional indemnity insurance business between 1997 and 2000 – could withdraw from the local market.