June 18, 2019
Provincial Government to Introduce Legislation to Eliminate the Retail Sales Tax on Automobile Insurance
As committed in Budget 2019, the Provincial Government is eliminating the remaining 13 per cent Retail Sales Tax (RST) on automobile insurance. To accomplish this, the Honourable Tom Osborne, Minister of Finance and President of Treasury Board, will introduce the necessary changes to the Revenue Administration Act today in the House of Assembly.
This tax elimination will come into effect once the Revenue Administration Act and Regulations receive Royal Assent, which is expected to occur in July 2019, and will be retroactive to April 15, 2019. The RST is charged on the retail sale transaction, so customers will see changes to their insurance bills when they renew their insurance policies.
Anyone who has renewed their automobile insurance between April 15 and the date when the legislation comes into force will receive a rebate from their insurance provider for the amount of RST paid.
“As committed in Budget 2019, we are making changes to taxation in a responsible way as we can afford to do so. We chose to eliminate the tax on auto insurance as it will have a far reaching impact on all motorists and businesses that have vehicle fleets in our province. As we continue forward with our financial plan, we remain focused on finding opportunities for tax relief that will keep us on course for fiscal stability.”
Honourable Tom Osborne
Minister of Finance and President of Treasury Board
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2019 06 18 1:05 p.m.