Saskatchewan reinstates provincial sales tax, insurance premiums affected

Reimplementation of tax could push homeowners into taking deals from illegal home repair contractors

Saskatchewan reinstates provincial sales tax, insurance premiums affected

Insurance News

By Lyle Adriano

The province of Saskatchewan recently unveiled its budget, revealing a sudden reinstatement of provincial sales tax (PST) on renovation, retrofit and maintenance projects.

According to reports, the reimplementation of the tax is part of the province’s attempt to address a considerable slump in resources prices.

Learn more about property owners insurance here.

“This budget meets the challenge by taking a number of significant measures — including some difficult but necessary measures — on both the revenue and the spending side,” Finance Minister Kevin Doherty said as he detailed plans to increase PST to 6%, remove previous PST exemptions, reduce and/or eliminate tax credits, and cut funding for certain programs and services, as reported by Canadian Apartment.

Following the announced changes, property owners will pay a higher PST rate – up 5% – on items that had been traditionally taxed. The elimination of PST exemptions adds a 6% surcharge on some capital and operation costs.

Want the latest insurance industry news first? Sign up for our completely free newsletter service now.

Insurance premiums and contracts for “repair, renovation or improvement of real property,” previously exempted from taxation, will now carry the surcharge.


Related stories:
Federal budget measure prevents foreign branches of insurers from avoiding tax
Insurance tax to be phased out – timescale revealed

Keep up with the latest news and events

Join our mailing list, it’s free!