2. Amendment of section 3 of Act…

Section 3 of the Economic Service Charge Act,

No. 13 of 2006 (hereinafter referred to as the “principal enactment”) as last amended by Act, No. 11 of 2008 is hereby further amended by the insertion, immediately after subsection (3) of that section, of the following new subsection—

“(3A) Where an insurer engaged in carrying on both long term insurance business and general insurance business segregates such business into long term insurance business and general insurance business to be carried on by two separate companies, as required by section 53 of the Regulation of

Insurance Industry (Amendment) Act, No. 3 of 2011, the balance, if any, as at the date of such segregation of the amount levied as service charge after the deduction in accordance with subsection (1), (2) or (3) shall notwithstanding anything to the contrary in any other provisions of this Act, but subject to the preceding provisions of this section, be deducted from income tax payable by the company that is carrying on the general insurance business after such segregation as if the same company were continuing to carry on the business.”.