April 25, 2008
Province and Industry Working to Process Elimination of Insurance Tax
The Honourable Tom Marshall, Minister of Finance and President of Treasury Board, said today the Provincial Government and the Insurance Brokers� Association of Newfoundland and Labrador (IBAN) have been working together to accommodate the elimination of the sales tax on insurance and the processing of refunds to customers.
On April 22, the Honourable Danny Williams, Premier of Newfoundland and Labrador, announced the Provincial Government will eliminate the 15 per cent retail sales tax on insurance premiums retroactive to January 1, 2008. This measure will put $94 million this year and $75 million annually thereafter back into the hands of individuals, businesses, municipalities and the not-for-profit sector.
"People are excited about our government�s decision to eliminate the sales tax on insurance and we understand those eligible for rebates for insurance tax paid since January 1, 2008, are anxious to get that tax back," said Minister Marshall
"We have been working with the insurance industry to clarify any administrative and processing issues, and steps are being taken to ensure those eligible for tax refunds will get them as soon as possible. Our government understands, however, that the industry cannot provide refunds overnight, since time is needed to alter computer systems and process refunds," said Minister Marshall. "I appreciate the industry has willingly taken on this temporary administrative burden which will stretch their resources for a time. It is in the best interests of all stakeholders - consumers, the insurance industry and government, to expedite refunds as soon as possible. We are hopeful that most refunds can be processed within 90 days."
Robert Dunne, IBAN Executive Director, said after 15 years of lobbying, the insurance industry certainly welcomes this announcement.
"Insurance companies will need time to implement the technical and administrative requirements to accommodate the elimination of tax on insurance. We only ask the public to be patient and those eligible will receive their rebates in a timely manner," said Mr. Dunne.
For more information on the elimination of the RST on insurance go to //www.gov.nl.ca/fin/taxonprem.html or call 1-877-729-6376 or 709-729-0258.
Media contact: 2008 04 25
2008 04 25 5:00 p.m.
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