Almost three-quarters of Saskatchewan residents are opposed to their provincial government’s decision to apply provincial sales tax (PST) to a range of insurance products, according to a recent survey the Financial Advisors Association of Canada (a.k.a. Advocis) commissioned.<\/p>\n
In the survey of 600 Saskatchewan residents, conducted in early August by Ottawa-based public affairs firm Maple Leaf Strategies Inc., 73% said they oppose or strongly oppose taxing insurance.<\/p>\n
Saskatchewan’s decision to apply its 6% PST to insurance premiums, including individual and group life and health insurance, was revealed in the province’s 2017-18 budget in March and took effect Aug. 1.<\/p>\n
The life insurance industry has opposed the move vocally, arguing that the tax will make insurance less affordable and represents an unfair tax on savings.<\/p>\n
“People use insurance as a way to protect their family’s financial future in the event of an accident, illness or loss of life. They also use insurance as a way to save,” says Greg Pollock, president and CEO of Advocis, in a statement. “Taxing savings makes no sense. It puts the financial future of families at risk.”<\/p>\n
Of the Saskatchewan residents surveyed, 77% said taxing insurance is “unfair” and 73% said they believe it will cause individuals to reduce or cancel their insurance coverage.<\/p>\n
“Opposition to taxing insurance crosses every demographic and political category,” says Dimitri Pantazopoulos, partner with Maple Leaf Strategies, in a statement. “Moreover, there is a high level of awareness of this issue among the electorate.”<\/p>\n