Advocis CEO and president Greg Pollock thinks the move puts the financial future of Canadian families at risk
A recent government move united Canadians in the province of Saskatchewan, who, despite political and demographical differences, found a common battle: opposing the state's decision to add Provincial Sales Tax (PST) to a range of insurance products.
In a poll conducted by Maple Leaf Strategies, 73% of these Canadians strongly oppose enacting a levy for insurance products, with 77% pointing out that was unfair move.
Furthermore, a majority believe that this might push the button for some of these insurance plan holders, urging them to reduce or worse, cancel their coverage.
"If those people have an accident and are not covered for risks they will ultimately end up at the government's door – meaning higher costs in the end for taxpayers," Advocis member Dean Owen noted.
It is interesting to note that even 65% of Saskatchewan Party voters strongly argue against the additional levy whilst 47% of undecided voters say such changes would make them less likely to vote for the conservative party.
"Opposition to taxing insurance crosses every demographic and political category. Moreover, there is a high level of awareness of this issue among the electorate," said Maple Leaf Strategies pollster Dimitri Pantazopoulos.
For Advocis CEO and president Greg Pollock, taxing insurance ultimately puts the financial future of Canadian families at risk.
"People use insurance as a way to protect their family's financial future in the event of an accident, illness or loss of life. They also use insurance as a way to save. Taxing savings makes no sense," he commented.
The government of Saskatchewan imposed 6% PST to insurance premiums in July. The tax applies to self-insured group benefit arrangements, new individual permanent life insurance policies, and endorsements added to insurance contracts.
There have been talks of re-opening the said debate even amongst the Saskatchewan Party. A report from Global News said Saskatchewan Party leadership hopeful Ken Cheveldayoff is eager to take a second look at the PST issue if given the chance to be the next leader of the party.
Cheveldayoff stated that he plans to appoint a tax review panel which will be given a 60-day window to consult with the public.
“(The panel) will have the time to look at what other provinces are doing, coordinate where we can, and have a very in-depth discussion with financial planners, with life insurance salespeople," he said, as quoted by the Global News.
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In a poll conducted by Maple Leaf Strategies, 73% of these Canadians strongly oppose enacting a levy for insurance products, with 77% pointing out that was unfair move.
Furthermore, a majority believe that this might push the button for some of these insurance plan holders, urging them to reduce or worse, cancel their coverage.
"If those people have an accident and are not covered for risks they will ultimately end up at the government's door – meaning higher costs in the end for taxpayers," Advocis member Dean Owen noted.
It is interesting to note that even 65% of Saskatchewan Party voters strongly argue against the additional levy whilst 47% of undecided voters say such changes would make them less likely to vote for the conservative party.
"Opposition to taxing insurance crosses every demographic and political category. Moreover, there is a high level of awareness of this issue among the electorate," said Maple Leaf Strategies pollster Dimitri Pantazopoulos.
For Advocis CEO and president Greg Pollock, taxing insurance ultimately puts the financial future of Canadian families at risk.
"People use insurance as a way to protect their family's financial future in the event of an accident, illness or loss of life. They also use insurance as a way to save. Taxing savings makes no sense," he commented.
The government of Saskatchewan imposed 6% PST to insurance premiums in July. The tax applies to self-insured group benefit arrangements, new individual permanent life insurance policies, and endorsements added to insurance contracts.
There have been talks of re-opening the said debate even amongst the Saskatchewan Party. A report from Global News said Saskatchewan Party leadership hopeful Ken Cheveldayoff is eager to take a second look at the PST issue if given the chance to be the next leader of the party.
Cheveldayoff stated that he plans to appoint a tax review panel which will be given a 60-day window to consult with the public.
“(The panel) will have the time to look at what other provinces are doing, coordinate where we can, and have a very in-depth discussion with financial planners, with life insurance salespeople," he said, as quoted by the Global News.
For more of Wealth Professional's latest industry news, click here.
Related stories:
How advisors can benefit from upcoming tax changes
The emerging market that’s poised to boom
