Saskatchewan government changes date for PST on insurance premiums
The Saskatchewan government is pushing back the date when the six per cent provincial sales tax will be charged on insurance premiums.
Government officials said changing the effective date from July 1, 2017 to Aug. 1, 2017 was made after discussions with insurance industry associations.
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Saskatchewan Finance Minister Kevin Doherty said this will allow the insurance industry additional time to implement the change.
“The insurance industry associations have asked us for more time to implement this change and we want to ensure a smooth implementation,” Doherty said in a release.
“We’ve listened and have agreed to move the effective date back one month as well as update the application of PST to ensure it is applied fairly across the industry.”
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Officials said PST will now be applied to self-insured group arrangements, known as Administrative Services Only (ASO) arrangements.
PST will be exempt from individual life insurance policies and on any endorsements added to insurance contacts in effect prior to Aug. 1.
Charging PST on insurance premiums was announced in the last provincial budget.