06/14/2012 05:18 EDT | Updated 08/14/2012 05:12 EDT

Manitoba government softens plan to start taxing some insurance policies

WINNIPEG - The Manitoba government has backed down on part of its plan to start charging sales tax on insurance policies.

Finance Minister Stan Struthers has amended a budget bill to exempt disability, critical illness and accidental death and dismemberment insurance from the seven per cent provincial sales tax.

Premier Greg Selinger says the insurance industry made the case that the tax should not be applied to such policies.

The budget in April brought in tax for some kinds of insurance, including home, mortgage and group health plans.

Other kinds of insurance remain tax-exempt, including automobile and personal health insurance.