Insurance tax axed
A 15% sales tax on premiums has been axed by the Canadian province of Newfoundland and Labrador.
Premier Danny Williams says the tax cut – estimated to cost his government $C94 million ($99 million) this year and $C75 million ($79 million) thereafter – “will benefit each and every individual, corporation, small business, community, municipality and volunteer organisation in this province”.
Speaking in the province’s House of Assembly last week, he said the issue was raised repeatedly during budget consultations over the past six months.
“The insurance industry has lobbied long and hard for the elimination of this tax,” he said. “The change will place a compliance burden on insurers, [but] I am confident they will be pleased to comply.”
The new law is retroactive to January 1, meaning many consumers will receive a rebate once the provincial budget is approved.
Premier Danny Williams says the tax cut – estimated to cost his government $C94 million ($99 million) this year and $C75 million ($79 million) thereafter – “will benefit each and every individual, corporation, small business, community, municipality and volunteer organisation in this province”.
Speaking in the province’s House of Assembly last week, he said the issue was raised repeatedly during budget consultations over the past six months.
“The insurance industry has lobbied long and hard for the elimination of this tax,” he said. “The change will place a compliance burden on insurers, [but] I am confident they will be pleased to comply.”
The new law is retroactive to January 1, meaning many consumers will receive a rebate once the provincial budget is approved.