Small businesses in Newfoundland and Labrador want reduced insurance costs

More than half of Newfoundland and Labrador’s 15,000 small businesses say insurance costs are a major constraint. Premiums are going up, and in many cases significantly.

A matchstick figure bending under pressure from three dollar signs symbolizing the cost pressures small business owners are facing

2008: Eliminated

The 15% retail sales tax on insurance premiums was eliminated in 2008.

Dollar sign inside a circle with an upward arrow symbolizing the cost increases

2016: Returned

It was brought back in 2016!

Dollar sign inside a circle with an arrow passing through the circle symbolizing the rising prices and costs for small business owners

NOW: Half Measures

Now the government has removed it only on auto and home insurance, and it’s not permanent!

Did you know?

  • Newfoundland and Labrador has the highest retail sales tax on insurance premiums in Canada.
  • The government will collect $114 million in insurance taxes; the majority of it will come from the 15% Retail Sales Tax.
  • There is NO retail sales tax on insurance premiums in New Brunswick, Prince Edward Island or Nova Scotia.

Dear Minister Coady

CC: My Member of Parliament

Small businesses like mine are working hard to put the pandemic in our rearview mirror, but we’re still facing several challenges. Finding employees is a struggle, energy costs are going up, and rising cost pressures like insurance premiums top it all off.

I need your help to reduce cost pressures so my business can contribute to the economic growth of the province.

I urge you to:

  • Eliminate the 15% Retail Sales Tax (RST) on all insurance premiums that impact businesses (property and casualty, environment, professional liability, director and officers, etc.).
  • Make these changes permanent.