The province’s 2017-18 Budget controls spending, modernizes and expands the tax base, and invests in priority government programs, services and infrastructure projects for the benefit of all Saskatchewan people. It also outlines a plan to return to balanced budgets in three years.
“Our challenge is clear,” Finance Minister Kevin Doherty said. “Resource revenue has declined by more than $1.0 billion and has stayed low for three years, depleting reserves and the rainy day fund.
“We need to move away from our level of reliance on resource revenues while at the same time ensuring important government programs and services are affordable and sustainable in the long run, and that our economy remains strong. The 2017-18 Budget will meet that challenge.”
“Every Saskatchewan taxpayer at every income level will see a decrease in their income taxes, and those whose income is too low to pay income tax will see an increase in the Saskatchewan Low-Income Tax Credit they receive,” Doherty said.
Tax expansion and measures include:
- PST will now be applied to children’s clothing, restaurant meals and snack foods, insurance premiums, construction services and permanently mounted equipment used in the resource sector;
- Education Property Tax is increasing to provide 40 per cent of funding to K-12 education;
- the exemption for bulk purchases of gasoline is being eliminated;
- The exemption for bulk purchases of diesel fuel is being reduced to 80 per cent of purchases to reflect the changing nature of farming and primary production operations and on-road and personal use of this fuel;
- The exemption for used cars will continue, but the value of a trade-in will no longer be deductible in determining the PST on the purchase of a new vehicle;
- Tobacco taxes are increasing, as are alcohol markups;
- Personal income tax credits for education and tuition expenses and the Employee Tool Tax Credit are being eliminated;
- The indexation of Personal Income Tax is being suspended;
- The Labour-Sponsored Venture Capital Tax Credit rate is being reduced; andThe Corporation Capital Tax on large financial institutions is being increased and the provincial income tax preference for credit unions is being phased out.
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