• Taxpayers call on province to reverse PST cash grab on insurance

REGINA, SK: The Canadian Taxpayers Federation (CTF) is calling on the Saskatchewan government to reverse its recent decision to slap the PST on insurance premiums, especially in light of the fact the province already charges hidden insurance premium taxes.

“Hitting insurance premiums with the PST is going to make it expensive for Saskatchewanians to protect their farms, their businesses, their homes and their families,” said Todd MacKay, CTF’s Prairie Director. “Insurance isn’t an optional extravagance, it’s a way for families and businesses to protect against uncertainty and risk.

“The Saskatchewan government needs to reverse its decision to slap the PST on insurance premiums.”

The Saskatchewan government has long charged hidden taxes on insurance premiums. The province charges a 1 per cent tax on fire and auto insurance premiums. It’s a 3 per cent tax on life, sickness, accident and hail insurance premiums. The tax goes up to 4 per cent on all other insurance premiums. Add it all up and hidden insurance premium taxes already cost taxpayers nearly $150 million in 2015-16.

Imposing a 6 per cent PST on insurance premiums will increase taxes for people in Saskatchewan by more than $200 million every year.

The PST will be charged on total premium costs, including the hidden insurance premium taxes, which means the Saskatchewan government is forcing taxpayers to pay a tax on a tax. That tax on tax will cost taxpayers nearly $9 million per year.

“It’s bad enough that the Saskatchewan government is slapping the PST on insurance premiums, but it’s absolutely unacceptable to force taxpayers to pay taxes on taxes,” said MacKay. “Charging PST on insurance premiums is nothing more than a money grab.”

The CTF has launched a petition calling on the government to reverse its decision to slap the PST on insurance policies – it’s available here and this LINK.