FOR IMMEDIATE RELEASE March 15, 2022
WHITEHORSE – In 2020, the Liberals doubled the tax Yukoners pay on insurance premiums. Combined with a ‘hard market’ in the insurance industry, Yukoners are watching their insurance premiums skyrocket – further increasing the cost of living in the territory.
The increase imposed on insurance companies by the Premier and the Liberals has made life more difficult for Yukon families and businesses and equates to a $4 million tax increase on the cost of living. Any Yukoner who owns a home, business, or car is forced to pay this Liberal tax increase. Due to rising inflation and the cost of living, the Liberals should provide relief to Yukoners by scaling back the tax to pre-2020 levels or suspending it altogether.
“Anyone with common sense knows that if government raises taxes by millions of dollars on insurance companies, they are going to charge their customers for every single dime of it,” said Finance Critic Brad Cathers. “With the rising cost of food, fuel, and essential goods, some Yukoners are having trouble making ends meet. The government could help ease the burden on families dealing with historically high insurance costs by repealing the Liberal tax hike.”
In 2020, the Premier told the Legislature not to worry about increasing taxes on insurance premiums because all the insurance companies are in Ontario and Quebec.
However, in their 2021 tax review, the independent firm KPMG warned since the Yukon makes the policyholder pay the tax if the insurer is not licensed in the territory, the tax would be passed on to consumers. Many Yukoners are finding that is exactly what has happened.
The Yukon Party has also called on the Liberal government to suspend the collection of the fuel tax this year as fuel prices go through the roof. So far, the Liberals have refused both the request to waive the fuel tax or to provide relief on their insurance tax.