Some break for consumers on new PST rules on trade-ins: SADA
The Saskatchewan Automobile Dealers’ Association (SADA) is clarifying what the PST on used cars means for dealers and the public, and said: “it’s going to be a benefit all the way around.”
This week’s provincial budget removed the six per cent PST exemption on used vehicle sales but as SADA director Maurice Plemel explained, the tax is not on the total sale price and there will be no price increases.
“The buyer is paying tax on the difference between the sale price and trade-in only,” he said.
paNOW spoke to local used car dealers this week who were unhappy about the prospect of customers having to pay over $1,000 on a vehicle valued at $17,000 as an example. They were also miffed about the government’s repeated taxation of the same asset each time it is traded-in.