Saskatchewan Premier Scott Moe announced Monday morning the province would be reinstating the provincial sales tax exemptions for agriculture, life and health insurance premiums, effective immediately. The changes are being made retroactive to August 1st of last year, the date PST was applied to insurance.
“Our government will help families and small businesses save money, invest and help our province grow,” Moe said in a press release issued Monday morning.
The change is expected to have an impact of $65 million on revenue forecast for 2017018, and $120 million in revenue forecast for 2018-19. Moe said the impact can be accommodated within the government’s three-year plan to balance the budget.
The Ministry of Finance will be working with the insurance industry to determine how to refund individuals and businesses which have paid PST on agriculture, life and health insurance premiums. Information on how refunds will be administered is expected to be announced later this spring.