Published by Greg Pollock, President and CEO Advocis, The Financial Advisors Association of Canada
February 26th, Premier Scott Moe announced through a press release that his government will reinstate the Provincial Sales Tax (PST) exemption for individual and group life and health insurance premiums, as well as crop, livestock and hail insurance premiums.
This is a major victory for Advocis members who have been actively working to convince both government and the public about the unintended consequences of applying the PST to life and health insurance. We commend the government for making the right decision to repeal the tax on insurance. Consumers in Saskatchewan are the real beneficiaries of this decision. It also sends a strong signal to other provinces that taxing insurance in this way is not good public policy.
Premier Scott Moe has directed his Minister of Finance to work with the insurance industry to determine the best way to refund individuals and businesses that have paid PST on life and health insurance premiums, as the exemption is reinstated retroactively to its effective date of August 1, 2017.
Advocis has been working hard on this issue since the Government of Saskatchewan announced their intentions to apply the PST to insurance premiums in their 2017 budget last spring. Advocis launched a radio and social media campaign, held meetings with politicians and government officials, and worked with the Saskatchewan Party leadership candidates to get a firm commitment to repeal this unfair tax. Our Saskatchewan members really stepped up to make this happen. These efforts alongside our industry partners have paid off.