The province of Saskatchewan recently unveiled its budget, revealing a sudden reinstatement of provincial sales tax (PST) on renovation, retrofit and maintenance projects.
According to reports, the reimplementation of the tax is part of the province’s attempt to address a considerable slump in resources prices.
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“This budget meets the challenge by taking a number of significant measures — including some difficult but necessary measures — on both the revenue and the spending side,” Finance Minister Kevin Doherty said as he detailed plans to increase PST to 6%, remove previous PST exemptions, reduce and/or eliminate tax credits, and cut funding for certain programs and services, as reported by Canadian Apartment.
Following the announced changes, property owners will pay a higher PST rate – up 5% – on items that had been traditionally taxed. The elimination of PST exemptions adds a 6% surcharge on some capital and operation costs.
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Insurance premiums and contracts for “repair, renovation or improvement of real property,” previously exempted from taxation, will now carry the surcharge.
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