232808

Canada  

Tax hike for Saskatchewan

Saskatchewan residents will have to dig deeper into their pockets for everything from alcohol to home renovations as the government increases the provincial sales tax to help tackle a $1.3-billion deficit.

The budget tabled Wednesday raises the PST to six per cent from five and applies the tax to things that were previously exempt, such as children's clothing and restaurant meals.

"We need the revenue," Saskatchewan Finance Minister Kevin Doherty said of the PST increase.

"All the changes that we're making with respect to the shift from tax on income and productivity to consumption taxes is based on our government's intention to get off such a heavy reliance on resource revenues."

"I acknowledge it will put some pressure on families," he added.

The Saskatchewan government is facing a $1.3-billion deficit in the fiscal year just ending, and hopes to bring it down to $685 million in the year ahead. The plan is to balance the budget in three years.

The government's problem is a big drop in revenue from oil and gas, potash and uranium. Tax revenue was also lower than forecast and crop insurance claims were up.

Doherty says personal income and corporate taxes are being cut to spur economic growth.

Tobacco and alcohol taxes are going up.

The provincially owned bus company will be shut down, putting 224 people out of a job. The government says it would have cost $85 million to keep the Saskatchewan Transportation Company, known as STC, running for the next five years.



More Canada News



232391