Update: Premier Moe Announces PST Exemption on Various Insurance
Premier Scott Moe has fulfilled his commitment to reinstate the Provincial Sales Tax (PST) exemption for agriculture, life and health insurance premiums, effective immediately.
Our government will help families and small businesses save money, invest and help our province grow, Moe said. Part of that commitment is to exempt agriculture, life and health insurance from PST.
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 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.
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 on how the refunds will be administered will be available by April 10.
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