Recently, the Greater Charlottetown Area Chamber of Commerce notified members that the federal government was considering taxing employer-paid health and dental benefits. In this notice, the Chamber outlined what impact this tax would have on employers and employees, and drew attention to a letter-writing campaign for those who opposed this potential policy.
Today, the Chamber is pleased to say that after the combined lobby efforts of chambers nationwide, Prime Minister Trudeau announced that the federal government will not tax health and dental benefits. This announcement was made during Question Period on Wednesday, January 31.
As this was only a verbal commitment, the Greater Charlottetown Area Chamber of Commerce will continue to monitor developments related to this policy item. Overall, this comes as positive news for employers, employees and all sectors who would be directly impacted by such a tax.