Gyms will no longer be subject to the expansion of the PST under the province's new plan. (The S2DIO/Facebook)

By Rob Mahon

Provincial Affordability Plan

$500 cheques, PST changes among provinces affordability plan points

Aug 23, 2022 | 5:00 PM

After announcing they were going to be giving $500 cheques to Saskatchewan residents over the age of 18, the Sask. Party government unveiled the rest of their plan for economic recovery on Tuesday, Aug. 23. The proposed plan has four main points, and more than a few points of contention from critics.

The $500 cheques, listed as the Saskatchewan Affordability Tax Credit payment, is point one. The remaining points are removing some aspects of the planned PST expansion; including gyms and recreational activities for youth, extending the small business tax rate reduction, and retiring up to $1 billion in operating debt.

“Higher global commodity prices are driving growth in Saskatchewan’s economy, creating jobs and improving our budget position,” Deputy Premier and Finance Minister Donna Harpauer said. “However, higher commodity prices are also driving up the cost of almost everything you buy. Saskatchewan people own the resources. Saskatchewan people should benefit when resource prices are high. That’s why we’re going to use higher resource revenues to help address rising costs and to retire up to $1 billion of the province’s debt.”

According to their release, the provincial government will be $1.7 billion lower at the end of this fiscal year than their initial budget predicted.

“Helping Saskatchewan people through a time of higher costs, as well as taking the prudent measure of retiring debt, strikes the right balance and helps our province move forward,” Harpauer said. “That’s growth that works for everyone.”

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Changes to the PST expansion will be among the most noteworthy points for people who were bracing for a hit to their wallets on Oct. 1. Gyms are no longer part of the proposed PST expansion, nor are activities like hockey, golf, basketball, and other sports as long as the people playing them are under the age of 18. Movie theatres, concerts, trade shows, escape rooms, and sporting events, however, still charge the PST.

The response from the NDP, the official opposition, was unenthusiastic. They pointed out they had been asking the Sask. Party to provide relief for Saskatchewan families for months, and that the timing of the announcement was poor.

“The first quarter financial report released today confirms that, as people have faced crushing cost of living increases, the Sask. Party had chosen to be dishonest with their budget,” said NDP finance critic, Trent Wotherspoon, “hiding and hording billions of dollars of windfall revenues, delivering no relief, and instead they’ve piled on with more taxes, fees, and utility hikes making things worse.”

As for changes to the PST, it’s true that all gyms will no longer be subject to the increase. The remainder of the changes, however, are confusing according to the NDP.

“We see a whole bunch of spin and hyperbole that I think is meant to confuse Saskatchewan people,” Wotherspoon said. “But Saskatchewan people will see through that kind of spin. The reality is, the Sask. Party is pushing forward with the lion’s share of new taxes, the new PST they’re imposing on the hardest hit industries and Saskatchewan people. What we see is a really convoluted, goofy set of regulations.”

Wotherspoon added what he felt the Sask. Party should’ve announced was the removal of their plan to expand the PST altogether.

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rob.mahon@pattisonmedia.com

On Twitter: @RobMahonPxP