Saskatchewan Premier Scott Moe has made good on his campaign commitment to reinstate the PST exemption on insurance premiums.
Effective Feb. 26, premiums for agriculture, life and health insurance will no longer be subject to the provincial sales tax. The move is retroactive to Aug. 1, 2017, when the tax was first applied.
Crop, livestock and hail insurance premiums are included in the change, as are individual and group life and health insurance premiums, and disability, accident and sickness premiums.
On the agriculture side alone, farmers can expect to save or be reimbursed thousands of dollars.
“Our government will help families and small businesses save money, invest and help our province grow,” Moe said in a news release.
Reinstating the exemption will cost about $65 million in this fiscal year and $120 million in 2018-19. The premier said the costs will be accommodated within the three-year plan to balance the budget.
The government will release more details by April 10 on how people who have already paid the premiums will be reimbursed. That’s the day the 2018-19 budget will be announced.