Action: That’s why we launched an aggressive campaign and thanks to 1,300 business owners like you, who took the time to sign our petition, we delivered them to the Minister of Finance. We told the provincial government our #1 tax cut recommendation was to remove the PST from insurance premiums.
Result: Premier Scott Moe listened to your concerns and on February 26th reinstated the PST exemption for agriculture, life and health insurance premiums.
CFIB welcomed this decision and issued a news release: Small businesses commend Premier's decision to remove the PST from insurance premiums; 90% of Sask entrepreneurs support this decision. In fact, Premier Moe thanked CFIB and said our input was why the Govt made this decision: “Input & constructive advice from Saskatchewan job creators, taxpayers was key in decision to restore PST exemption on crop, life, health insurance.”
The exemption covers agriculture, which includes crop, livestock and hail insurance premiums, as well as individual and group life and health insurance premiums. Health includes disability, accident and sickness insurance. The exemption is retroactive to August 1, 2017, the date PST was applied to insurance. The change will provide $65 million in tax relief for 2017-18 and $120 million in tax relief for 2018-19. The Ministry of Finance will work with the insurance industry to determine the best way to refund individuals and businesses that have paid PST on agriculture, life and health insurance premiums. More information about how the refunds will be administered will be available by April 10.
Next Steps: We plan to meet Premier Scott Moe on March 8th and will urge the province to provide additional tax relief in the upcoming Saskatchewan Budget by also removing the PST from other insurance products such as property and vehicle insurance and reinstating both the PST commission and the indexation of the Personal Income Tax (PIT) system.