Newfoundland and Labrador increases HST rate to 15% and

Tax Insights
from Tax Services
Issue 2016-26
Newfoundland and Labrador
increases HST rate to 15% and
reintroduces 15% RST on property
and casualty insurance premiums
April 15, 2016
In brief
Newfoundland and Labrador’s 2016 budget increases the province’s HST rate to 15% on July 1, 2016,
with the provincial portion of the HST increasing from 8% to 10%. As part of the Liberal Party platform,
Newfoundland and Labrador’s Premier, Dwight Ball, previously cancelled the former government’s plan
to increase the HST rate on January 1, 2016.
The budget also reintroduces the 15% Retail Sales Tax (RST) on insurance premiums for property and
casualty insurance policies.
In detail
RST
The RST had been imposed on
insurance premiums for
property and casualty insurance
policies until January 1, 2008,
when it was rescinded.
Transitional rules dealing with
the HST rate increase have not
been released. Additional details
are forthcoming to address,
among other things:


the specific types of
property and casualty
insurance that will be
subject to RST
transitional rules for
determining when RST
applies to premiums that
are paid for coverage that
straddles July 1, 2016, and
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2016 budgets: PwC will keep you up-to-date on tax changes in Canada's federal and provincial budgets.
Go to www.pwc.com/ca/budget
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