A Victorian inquiry into regulation barriers within the financial services sector has identified insurance tax as a concern, but is unlikely to address the issue.

The Victorian Government has initiated the Victorian Competition & Efficiency Commission inquiry in a bid to reduce regulatory obstacles and lift the state’s competitiveness.

A draft report released at the end of March says insurance taxes comprise a major component of state taxes and regulations.

While the commission says it is aware of concern about stamp duty, it is unlikely to propose widespread reform.

Instead, the draft report points to the now-completed Henry federal tax review as the ideal blueprint for taxation reform.

The Victorian inquiry will deliver a final report by June 18. Those findings will precede an existing 15-month Victorian Government inquiry into fire services funding, due to conclude next year.