Saskatchewan Premier Scott Moe has followed through on his leadership campaign promise to reinstate PST exemptions for agriculture, life and health insurance premiums, effective Monday.
The provincial sales tax was raised in last year’s budget from 5 to 6 percent, and applied to goods and services that were previously exempt, such as insurance premiums. The Agricultural Producers Association of Saskatchewan (APAS) estimated having PST applied to insurance premiums would cost farmers over $28 million per year.
The exemption, announced on Monday, 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.
It’s retroactive to August 1, 2017, the date PST was applied to premiums. The province says it will work with insurance providers to determine the best way to refund premiums that have already been paid, with more information to be made available by April 10th — provincial budget day.
Vehicle and property insurance premiums are not exempt.
The province forecasts the changes will impact revenues by $65 million in 2017-18 and $120 million in 2018-19.
“Our fiscal plan remains on track, even with this reinstatement of the PST exemption on crop, life and health insurance,” said Moe.