Canada

PST exemption, debt payments and small business tax cuts underscore four-point affordability scheme outlined by Finance Minister

Saskatchewan Finance Minister Donna Harpauer. (herald file photo)

The state government has unveiled four affordable plans to help Saskatchewan residents cope with rising costs of living, but not everyone believes Sask. has everyone’s best interests in mind.

According to a Saskatchewan government media release, the Four Points Affordability Plan will use higher incomes from resources owned by Saskatchewan people to address rising costs from inflation and reduce the state’s debt. help reduce.

Deputy Prime Minister and Treasurer Donna Harpower said, “Rising global commodity prices are driving economic growth, creating jobs and improving the budget situation in Saskatchewan,” adding that the state’s 2022 -It released its first quarter 2023 financial report and four-point affordability plan on Tuesday.

“But rising commodity prices are also driving up the cost of almost everything we buy. Saskatchewan people own the resources. said Harpauer. “As such, we intend to use higher resource revenues to address rising costs and pay down state debt of up to $1 billion.”

“This means we can balance the budget, pay off debt and help Saskatchewan residents raise their cost of living,” Harpauer said. “It’s growth that works for everyone.”

Affordability plans are fully embedded in our Q1 forecast. Saskatchewan projects a surplus of $1.04 billion from 2022 to 2023, which is a $1.51 billion improvement from his budget.

Saskatchewan’s finances have significantly improved due to a strong economy and rising resource prices, according to the state government.

In response to Harpauer’s first-quarter financial report, official opposition financial commentator Trent Wotherspoon lambasted Sask’s timing and priorities. Affordable plans for parties in his own media release.

Wotherspoon told Sask, as people in Saskatchewan face a significant increase in the cost of living. The party’s affordable payments are just a fraction of the increase in household expenses since they submitted their budget.

“We have been seeking affordable relief for months. We’re raising taxes, fees and utilities,” said Wotherspoon. “Waiting until the night before the by-election to buy votes is totally irresponsible, with families struggling for months.”

“Sask. The Communist Party pays the common people its own taxes once while pocketing federal cash again.” It’s obsessed with recklessly taxing regular workers into submission, with no end in sight.”

“At the same time, the Treasurer wasted eight grand on one flight to North Battleford and the family had to cancel the trip just to put food on the table,” he said. “The people of Saskatchewan deserve a government that earns their trust, not buys it.”

Point 1 of the plan announced by Harpauer is the payment of the Saskatchewan Affordability Tax Credit. All Saskatchewan residents who are 18 years of age or older as of December 31, 2022 and have filed a 2021 tax return as a Saskatchewan resident will be eligible for the $500 Saskatchewan Affordability Tax Credit this fall. receive a check for

Residents of Saskatchewan who have not filed their 2021 tax returns are encouraged to do so as soon as possible. checks are estimated to be mailed.

Plan point 2 is to remove fitness and gym memberships and some recreational activities from the PST expansion on enrollment, entertainment and recreation scheduled for October.

PST is a resident under the age of 18 who participates in recreational activities such as golf, curling, hockey, tennis, basketball, or any other formal activity in which an individual participates in a league or service in which a round, game, or match is completed. You will not be charged if you participate in sporting activities.

These activities are taxable for individuals over the age of 18.

PST does not apply to fitness classes, personal training, or other fitness activities offered at municipal recreational facilities.

Arts, culture and sports programs and league membership fees for gymnastics, arts and acting classes are also waived.

Businesses that qualify as small suppliers subject to GST are exempt from collecting PST.

This will continue the temporary zero percent small business tax cut and eliminate up to $1 billion in debt made possible by the projected surplus.

The PST expansion will continue to apply to admission to sporting events, concerts, trade shows, trade fairs, rodeos, cinemas, professional water parks and entertainment such as escape rooms, batting cages and arcades.

The change will reduce PST revenues by an estimated $3 million this year, according to the Saskatchewan government.

Families will spend 6% more on sports and entertainment, Wotherspoon said, with some families facing $200 in lunchroom fees.

“We will have to pay hundreds more in utility bills alone next year,” reads a media release from Wotherspoon. A childless couple would receive more than three single parents.”

Point 3 of the plan is to extend the reduction of the small business tax rate retroactively to 0% until 1 July 2022 and delay the return of the tax rate to 2% until 1 July 2024. While facing new challenges such as inflationary pressures, rate hikes and supply chain issues,

Saskatchewan has approximately 31,000 small businesses.

The state government says this will save these small businesses $93.1 million over the next three years, an average of $3,000 per small business.

Point 4 is the repayment of trade debt up to $1 billion.

“Debt is currently projected to be $1.7 billion lower by the end of the fiscal year than projected in the budget. The state’s projected surplus provides the ability to service up to $1 billion of debt. Read the Saskatchewan Government press release.

Debt service and reduced borrowing will reduce interest expense by an estimated $49 million, resulting in lower funding costs.

“Our economy is strong and growing,” Harpauer said. “Saskatchewan is poised to lead the state in her 2022 economic growth, according to private sector projections, and nearly 24,000 new jobs will be created in the first seven months of 2022. I did.”

First quarter revenue is projected to be $19.17 billion, 11.7% above budget. The increase was primarily due to a $1.86 billion increase in non-renewable resource revenues, reflecting higher potash and oil prices.

Tax revenues are projected to increase by $536.5 million, with higher income and sales tax revenues reflecting a stronger-than-expected economic recovery. Other self-sourced income and federal transfers are also over budget.

Saskatchewan will continue to have one of the lowest net debt to gross domestic product (GDP) ratios of any state. Net debt as a percentage of GDP is projected to be 15.6% compared to the budget’s 18.8%.

Saskatchewan’s real GDP is expected to grow by 4.7% in 2022, the highest of any state, according to private sector forecasters.

“So far in 2022, Saskatchewan has had the highest growth of all states in wholesale trade, international commodity exports, manufacturing and sales, and investment in non-residential construction. The unemployment rate has fallen from an average of 7.3% in the first seven months of last year to 5.0% in the first seven months of this year, the third lowest in the state,” Harpauer said. . “Saskatchewan is really on track.”

More information about the Saskatchewan Affordable Tax Credit (SATC) and PST changes is available online at www.saskatchewan.ca/affordablity.

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PST exemption, debt payments and small business tax cuts underscore four-point affordability scheme outlined by Finance Minister

Source link PST exemption, debt payments and small business tax cuts underscore four-point affordability scheme outlined by Finance Minister

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