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Tax changes for New Brunswick, Newfoundland and Labrador and Prince Edward Island

News Release

Change for New Brunswick, and Newfoundland and Labrador

Effective July 1, 2016:
  • The New Brunswick and Newfoundland and Labrador harmonized sales taxes (HST) will both increase from 13% to 15%.
  • The Newfoundland and Labrador premium tax rate will increase from 4% to 5%.

Change for Prince Edward Island

Effective October 1, 2016, the Prince Edward Island harmonized sales tax (HST) will increase from 14% to 15%.

iA Financial Group (Industrial Alliance Insurance and Financial Services Inc.) will apply these changes as follows:

  • Monthly billings will be adjusted to reflect the new tax rates effective at the tax rate change date. The change will be applied to benefits on which tax is explicitly charged, such as health spending accounts (HSA), wellness accounts (WA or PAA), and administrative services only (ASO) plans billed in arrears as well as Cost Plus agreements. 
  • For other benefits for which tax is included in the premium tax rate, such as insured benefits or ASOs with budgeted rates, the premium rates will be modified at the next renewal to reflect the tax changes.  However, the financial reports for these groups, where applicable, will reflect the tax changes as of their effective date.

If you have any questions or concerns in this regard, please contact your iA Financial Group benefits advisor or group insurance sales advisor.