Calls have been made to cut a ‘hidden’ tax which is estimated to cost the public and businesses as much as £8 billion every year.

Insurance tax adds an extra 12 percent on to most insurance policies – which means an average of £67 is added to premiums for car insurance.

This tax shoots up to more than £100 for households with a car when home insurance is added.

It comes after research of 2,000 adults with insurance found 31 percent have no idea Insurance Premium Tax (IPT) even existed,…