TORONTO, Feb. 26, 2018 /CNW/ - Advocis and its members in Saskatchewan along with consumers in the province are celebrating today as the new premier of the province, Scott Moe, fulfilled his leadership campaign promise to reinstate a provincial sales tax (PST) exemption on life and health insurance premiums.
"We're very pleased with this decision and would like to congratulate the new premier for making good on his campaign promise," says Greg Pollock, president and CEO of Advocis. "This was absolutely the right thing to do." The PST is being repealed retroactively to August 1, 2017, the date the tax was implemented following the 2017 Saskatchewan budget.
"Saskatchewan is now headed back in the right direction," affirmed Pollock. "The tax was a bad idea, and maintaining it would have a very negative impact on consumers in the long term. It was already hurting vulnerable residents such as those on fixed incomes and families struggling on minimum-wage incomes."
A poll done for Advocis in the days immediately following implementation of the PST on premiums showed that 53% of Saskatchewan residents felt the province was headed in the wrong direction.
As well, 73% of respondents opposed the tax. The survey also revealed the PST would make many Saskatchewan consumers consider reducing their life and health insurance coverage, or cancelling their policies altogether.
"We knew the implementation of the tax was wrong for so many reasons and we felt compelled to act in the best interests of Saskatchewan consumers," says Pollock. Advocis engaged in a campaign to inform the public on the detrimental impacts of applying PST on insurance, some of which are clearly designed as a form of savings.
"Today's announcement by the Government of Saskatchewan is not only in the very best interests of consumers in that province, but also great news for all Canadians," says Pollock.
"Other provinces were watching this issue closely. Today's outcome and Premier Moe's decision will hopefully make other jurisdictions think twice about implementing similar insurance premium taxes that will hurt consumers' long-term financial security."
Advocis, The Financial Advisors Association of Canada, is the association of choice for financial advisors and planners. With more than 13,000 members in 40 chapters across the country, Advocis is the definitive voice of the profession, advocating for professionalism and consumer protection. Advocis works with decision-makers and the public, stressing the value of financial advice and working toward an environment in which all Canadians have access to the advice they need.
SOURCE Advocis, The Financial Advisors Association of Canada
For further information: and to arrange interviews, contact: Julie Martini, Director, Marketing & Communications, 416-342-9864, Jmartini@advocis.ca