IBC asks Newfoundland to remove taxes on insurance premiums

Insurance Bureau of Canada (IBC) has reiterated its long-standing call to the government of Newfoundland and Labrador to remove taxes on insurance premiums.

“The people of Newfoundland and Labrador have the highest insurance tax burden in the G8,” Don Forgeron, IBC vice-president, Atlantic region, said in a release. “For every dollar of home, car and business insurance they buy, the provincial government charges them 19.6 cents in tax. This adds up to [Cdn]$80 million annually.”

These “unnecessary” taxes are an unfair burden on homeowners and drivers, for whom insurance is a vital product, Forgeron said. “Premium taxes are also an impediment to businesses and not-for-profit organizations. Because these taxes are levied as a percentage of insurance premiums, organizations that face higher risk are also hit with more tax. Sectors most severely affected include not-forprofits, the hospitality industry and exporters.”

The IBC has stated its objections to the province’s high level of insurance tax in government submissions for many years.