Saskatchewan pushes back start date for PST on insurance premiums

The move is being made following consultations with the insurance industry

The Saskatchewan government is giving people a little more time before provincial sales tax (PST) is applied to insurance premiums.

The move to tax premiums was announced in the last provincial budget and was supposed to take effect on July 1.

However, the government announced Wednesday that the start date is being pushed back a month to Aug. 1, following consultations with representatives of the insurance industry.

In addition, the government announced PST will be applied to self-insured group arrangements, also known as “administration services only” arrangements.

Premiums on individual permanent life insurance policies that came into effect before Aug. 1, 2017, will be exempt from PST.

The release noted that any endorsements added to insurance contracts with effective dates prior to Aug. 1, 2017 will not be subject to the sales tax.

– Courtesy of The Canadian Press

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Transcontinental Media G.P.