Saskatchewan government announces PST exemption for some insurance premiums
REGINA - The Saskatchewan government says there will be no longer be a provincial sales tax on agriculture, life and health insurance premiums.
Premier Scott Moe pledged to bring in the exemption during the recent Saskatchewan Party leadership race. He says in a statement that the government is committed to helping families and small businesses.
But he says it will not impact the government's three-year plan to balance the budget by 2020.
"Our fiscal plan remains on track, even with this reinstatement of the PST exemption on crop, life and health insurance," he said.
Moe says the change will cost $65 million in revenue forecast for this fiscal year and $120 million for the following year.
The exemption covers premiums for crop, livestock and hail, as well as individual and group life and health insurance. It is retroactive to Aug. 1, 2017, the same day the province started adding the six-per-cent PST to insurance premiums.
But the Saskatchewan NDP say the government didn't do its homework before bringing in the PST hike in the last budget and is still standing by tax hikes that will raise the price of everything from kids' clothes and home insurance to food and drinks.
"The changes announced today will do nothing to help the construction industry, restaurant owners or families who have been struggling under the Sask. Party's massive PST hike," said finance critic Cathy Sproule in a statement.