One of Premier Scott Moe’s campaign commitments was to reinstate the Provincial Sales Tax (PST) exemption for agriculture, life, and health insurance premiums. Moe recently made good on his promise and made the exemption, retroactive to August 1, 2017.
“Our government will help families and small businesses save money, invest and help our province grow,” Moe said in a recent press release. “Part of that commitment is to exempt agriculture, life and health insurance from PST.”
The PST was first applied to the insurance premiums on August 1, 2017, when the Saskatchewan Party released their daring budget plan in an effort to gain a balanced budget by the end of their political term.
When Premier Brad Wall announced his retirement in late 2017, campaigning candidates were able to take a fresh look at the budget. The current PST changes are a result of that fresh look.
The agricultural portion of the exception means no more PST on crop, livestock, and hail insurance premiums. Individual and group life & health insurance premiums, including disability, accident and sickness insurance will also be exempt from the PST weight.
Home and vehicle insurance premiums will not see the same lift from PST, and so far there has been no word of that being changed in the near future.
The change has an impact of $65 million on revenue forecast for 2017-18 and a $120 million impact on revenue forecast for 2018-19.
Moe said the financial impact can be accommodated within the government’s three-year plan to balance the budget by 2019-20.
“Our fiscal plan remains on track, even with this reinstatement of the PST exemption on crop, life and health insurance,” Moe said in the press release.
According to the same release, the Ministry of Finance will work with the insurance industry to determine the best way to refund individuals and businesses that paid the PST up until February 26. More information about how the refunds will be administered will be available by April 10.
For the latest information and for more updates on everything Kindersley ‘Like’ the Kindersley Social Facebook page below…
