(Image Credit: ID 964422 © Sculpies | Dreamstime.com)

By battlefordsNOW staff

PROVINCIAL POLITICS

Sask. NDP calls for removal of PST on construction as government pushes back

Jan 26, 2026 | 4:24 PM

The Saskatchewan NDP is calling on the provincial government to remove the six per cent provincial sales tax on construction labour and materials, saying the levy is increasing costs for municipalities and discouraging investment, while the government argues the tax is needed to fund public services and municipal support.

The tax, introduced in 2017, applies to both labour and materials. The NDP says it adds an estimated $484 million in costs annually and is contributing to slower construction activity across the province.

NDP government relations shadow minister Erika Ritchie said eliminating the tax would help spur development and job creation.

“Let’s be clear — if you take the tax off construction, we will see more projects, more jobs and more prosperity,” Ritchie said.

“It’s more important than ever that we build a bright economic future for Saskatchewan. Scott Moe should get out of the way by putting an immediate stop to his job-killing tax.”

Water levels

Normal spring runoff predicted despite recent snowfall

2h ago

Responsive measures

Some Sask. farmers to get winter elk hunting permits next year to protect land

4h ago

Death of an inmate

Murderer Jason McKay dies while in custody at Sask. Penitentiary

4h ago

Ritchie spoke to reporters while attending the Battlefords Chamber of Commerce’s 120th annual chairs luncheon Monday.

The NDP linked the tax to broader economic pressures, noting Saskatchewan lost 4,000 jobs in last December and experienced population decline for the first time in 20 years outside the COVID-19 pandemic. The party also pointed to provincial debt, which it said has surpassed $40 billion.

“The tax is costing us half a billion dollars almost a year, and that is money that could be returned and invested in the community to create more jobs, more opportunity.”

Ritchie said municipalities are facing rising costs while having limited revenue options, adding that changes made in 2017 reduced programs such as grants-in-lieu for Crown corporations.

“As municipalities, they have very limited rights,” she said. “[What they can] do is use property taxes and fees for service, and it’s not enough to meet all the needs in their communities.”

The Saskatchewan government rejected the NDP’s criticism, saying the tax provides stable funding for essential services.

In a statement, The Battlefords MLA and Saskatchewan Health Minister Jeremy Cockrill said the broad application of the provincial sales tax ensures reliable revenue for public programs.

“A broad application of PST ensures that a fairly applied, reliable and sustainable source of revenue is available to fund the many public services provided by our government, including healthcare, education, infrastructure, and grants to the municipal sector through Municipal Revenue Sharing,” Cockrill said.

Cockrill said Municipal Revenue Sharing is tied to provincial PST revenues and provides predictable, no-strings-attached funding to communities.

He said funding to both North Battleford and Battleford has more than tripled since the program was introduced by the Saskatchewan Party.

Cockrill also disputed the NDP’s assessment of the provincial economy.

“The lost and reckless NDP continue to cheerlead against the Saskatchewan economy, even as we continue to have the strongest provincial economy in Canada,” he said.

“We are seeing low unemployment, major capital investment being attracted to Saskatchewan, and an increasing demand around the world for what we produce in Saskatchewan.”

The NDP maintains removing the construction PST would ease pressure on municipalities and businesses, while the government says the tax remains necessary to support public services across the province.

cjnbnews@pattisonmedia.com