THE 15% RETAIL SALES TAX
ON INSURANCE PREMIUMS MUST GO!

Small businesses in Newfoundland and Labrador want reduced insurance costs

More than half of Newfoundland and Labrador’s 15,000 small businesses say insurance costs are a major constraint. Premiums are going up, and in many cases significantly.

A matchstick figure bending under pressure from three dollar signs symbolizing the cost pressures small business owners are facing

2008: Eliminated

The 15% retail sales tax on insurance premiums was eliminated in 2008.

Dollar sign inside a circle with an upward arrow symbolizing the cost increases

2016: Returned

It was brought back in 2016!

Dollar sign inside a circle with an arrow passing through the circle symbolizing the rising prices and costs for small business owners

NOW: Half Measures

Now the government has removed it only on auto and home insurance, and it’s not permanent!

Did you know?

  • Newfoundland and Labrador has the highest retail sales tax on insurance premiums in Canada.
  • The government will collect $114 million in insurance taxes; the majority of it will come from the 15% Retail Sales Tax.
  • There is NO retail sales tax on insurance premiums in New Brunswick, Prince Edward Island or Nova Scotia.
Retail sales tax on insurance premiums in different provinces of Canada
Province RST
Newfoundland and Labrador 15%
Quebec 9%
Ontario 8%
Manitoba 7%
Saskatchewan 6%
New Brunswick NO TAX
Prince Edward Island NO TAX
Nova Scotia NO TAX
Alberta NO TAX
British Columbia NO TAX

Dear Minister Coady

CC: My Member of Parliament

Small businesses like mine are working hard to put the pandemic in our rearview mirror, but we’re still facing several challenges. Finding employees is a struggle, energy costs are going up, and rising cost pressures like insurance premiums top it all off.

I need your help to reduce cost pressures so my business can contribute to the economic growth of the province.

I urge you to:

  • Eliminate the 15% Retail Sales Tax (RST) on all insurance premiums that impact businesses (property and casualty, environment, professional liability, director and officers, etc.).
  • Make these changes permanent.
CFIB logo

The Canadian Federation of Independent Business (CFIB) is Canada’s largest association of small and medium-sized businesses with 97,000 members across every industry and region. CFIB is dedicated to increasing business owners’ chances of success by driving policy change at all levels of government, providing expert advice and tools, and negotiating exclusive savings.