Insurance Bureau of Canada, the national trade association of the property and casualty insurance industry, has reiterated its long-standing call to the government of Newfoundland and Labrador to remove taxes on insurance premiums.
Insurance Bureau of Canada (IBC) has stated its objections to the province’s high level of insurance tax in government submissions over many years. The tax problem in the province as compared to other jurisdictions has been clear since IBC commissioned a tax study by tax expert Jack Mintz in 2002. Recently, the IBC-led, multi-stakeholder Atlantic Task Force on Insurance Availability and Affordability also called for the elimination of premium taxes in the province.
Don Forgeron, vice-president of Atlantic, Insurance Bureau of Canada, said: The people of Newfoundland & Labrador have the highest insurance tax burden in the G8. 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 $80 million annually.