On April 15th, the Government of Newfoundland and Labrador announced that the tax on auto insurance is being removed effective immediately. Here are the 5 most important points to help you understand what this means:
- The tax on auto insurance has NOT been removed. Insurers are still required by law collect the tax on auto insurance until the legislation is amended.
- The removal of the auto insurance tax was included in the recent budget that was presented in the House of Assembly. The budget will be debated and voted on after the election. Only then can the removal of the tax on auto insurance be written into legislation.
- The Government of Newfoundland and Labrador hopes to pass a legislative amendment by early July 2019 to eliminate the tax on insurance retroactive to April 15, 2019.
- The Government of Newfoundland and Labrador is NOT removing the tax on property insurance nor commercial insurance.
- Details have not yet been provided ion how insurers are to manage the process nor how to handle any tax rebates that might be owned. The Government of Newfoundland and Labrador have stated that they will be consulting with the insurance industry to determine how to provide any tax rebates to customers who purchase insurance between April 15 and whenever the tax is officially eliminated.
Looking to get some further information about the auto insurance tax changes or any other insurance-related topics? Contact us at 1-855-726-8627 or message us directly on Facebook!