SKR
03-04-2023, 10:20 AM
https://leaderpost.com/news/saskatchewan/sask-ndp-asks-province-to-scrap-pst-on-construction-projects
Sask. NDP asks province to scrap PST on construction projects
NDP Leader Carla Beck said extra taxes are making Saskatchewan uncompetitive, arguing the province should be booming.
Jeremy Simes
Published Mar 02, 2023
The Saskatchewan NDP has joined municipalities in asking the provincial government scrap the PST on construction projects, arguing it is stalling economic activity when the province should be booming.
Alongside NDP infrastructure critic Trent Wotherspoon on Thursday, leader Carla Beck said the tax has increased project costs, contributed to delays and has resulted in municipalities raising taxes.
“It also makes us not competitive with jurisdictions, like Alberta,” Beck told reporters. “As Trent said, this is a province that should be booming. When you look at our natural resources, when you look at potash, those capital dollars are crucial. And they will go elsewhere if we’re not competitive.”
In 2017, the provincial government introduced the PST on construction and other service contracts as a measure that was meant to help balance the budget, projecting it would bring in $325 million in revenue.
At the time, municipalities, contractors and homebuilder groups slammed it as draconian, and have since asked the government to scrap it.
The Saskatchewan Urban Municipalities Association (SUMA) has said that while they’re grateful for provincial grants, they believe not having a PST on construction would allow them to better spend the dollars.
For example, the City of Yorkton paid nearly $1 million in PST on infrastructure projects in 2021. Likewise, Prince Albert paid $2.8 million.
Those dollars could be used on a new recreation facility or upgrading roads, according to SUMA president Randy Goulden, but have instead become budget line items.
“What would be beneficial is for these dollars to go to other things that are absolutely necessary in the community,” said Goulden in an interview on Thursday. “We appreciate the revenue sharing, but we’re very concerned about the PST on construction.”
A study from SUMA found that medium-sized cities have returned 24-39 per cent of their total municipal revenue sharing grant back to the province in the form of PST on construction projects.
The Saskatchewan Association of Rural Municipalities has also asked the government to remove the PST on construction contracts because it led to higher costs.
Kevin Dureau, a CEO with the Saskatchewan Construction Association, echoed the need to remove the PST to help with competitiveness, but added that the carbon tax, inflation and supply chain issues have also caused strains.
Beck described the measure as a “gut punch to growth.”
“If you ask me, if you ask business leaders and municipal leaders, this is a government that seems more interested in flashy headlines than actually investing in our communities,” she said.
A spokesperson from Premier Scott Moe’s office said in an email that PST helps fund programs and that municipalities benefit through various forms of revenue sharing.
As well, the spokesperson said Saskatchewan needs to be “mindful in not creating an unsustainable expense base, because we know resource revenue can be volatile.”
Moe has long argued that Saskatchewan’s economy is growing, pointing to the province’s low unemployment rate, as well as a yearly increase in exports, building permit values and retail trade.
Moe has also made note of various potash and agriculture projects on the horizon.
The NDP, however, argues Saskatchewan’s economy isn’t doing as hot as Moe makes it out to be.
Beck has pointed to figures that show Saskatchewan has been at the bottom in employment growth and GDP growth. She has also showed figures that state average building permit values in the province are down when compared to other provinces.
Wotherspoon said removing the tax would be one measure to help economic activity increase.
He said the PST the province would forgo would be offset by more people working and moving to the province.
“The choice to add the PST to construction labour was a mistake from day one, the epitome of a job killing tax that stuck our economy in the ditch,” he said.
Beck said “we need to get back to common sense in this province,” adding that the government needs to listen to local industry and municipal leaders.
[email protected]
I don't have any thoughts on this, other than noting the hilarity of the Sask Party bringing in a tax to distribute wealth and the NDP wanting to get rid of it to encourage investment.
Sask. NDP asks province to scrap PST on construction projects
NDP Leader Carla Beck said extra taxes are making Saskatchewan uncompetitive, arguing the province should be booming.
Jeremy Simes
Published Mar 02, 2023
The Saskatchewan NDP has joined municipalities in asking the provincial government scrap the PST on construction projects, arguing it is stalling economic activity when the province should be booming.
Alongside NDP infrastructure critic Trent Wotherspoon on Thursday, leader Carla Beck said the tax has increased project costs, contributed to delays and has resulted in municipalities raising taxes.
“It also makes us not competitive with jurisdictions, like Alberta,” Beck told reporters. “As Trent said, this is a province that should be booming. When you look at our natural resources, when you look at potash, those capital dollars are crucial. And they will go elsewhere if we’re not competitive.”
In 2017, the provincial government introduced the PST on construction and other service contracts as a measure that was meant to help balance the budget, projecting it would bring in $325 million in revenue.
At the time, municipalities, contractors and homebuilder groups slammed it as draconian, and have since asked the government to scrap it.
The Saskatchewan Urban Municipalities Association (SUMA) has said that while they’re grateful for provincial grants, they believe not having a PST on construction would allow them to better spend the dollars.
For example, the City of Yorkton paid nearly $1 million in PST on infrastructure projects in 2021. Likewise, Prince Albert paid $2.8 million.
Those dollars could be used on a new recreation facility or upgrading roads, according to SUMA president Randy Goulden, but have instead become budget line items.
“What would be beneficial is for these dollars to go to other things that are absolutely necessary in the community,” said Goulden in an interview on Thursday. “We appreciate the revenue sharing, but we’re very concerned about the PST on construction.”
A study from SUMA found that medium-sized cities have returned 24-39 per cent of their total municipal revenue sharing grant back to the province in the form of PST on construction projects.
The Saskatchewan Association of Rural Municipalities has also asked the government to remove the PST on construction contracts because it led to higher costs.
Kevin Dureau, a CEO with the Saskatchewan Construction Association, echoed the need to remove the PST to help with competitiveness, but added that the carbon tax, inflation and supply chain issues have also caused strains.
Beck described the measure as a “gut punch to growth.”
“If you ask me, if you ask business leaders and municipal leaders, this is a government that seems more interested in flashy headlines than actually investing in our communities,” she said.
A spokesperson from Premier Scott Moe’s office said in an email that PST helps fund programs and that municipalities benefit through various forms of revenue sharing.
As well, the spokesperson said Saskatchewan needs to be “mindful in not creating an unsustainable expense base, because we know resource revenue can be volatile.”
Moe has long argued that Saskatchewan’s economy is growing, pointing to the province’s low unemployment rate, as well as a yearly increase in exports, building permit values and retail trade.
Moe has also made note of various potash and agriculture projects on the horizon.
The NDP, however, argues Saskatchewan’s economy isn’t doing as hot as Moe makes it out to be.
Beck has pointed to figures that show Saskatchewan has been at the bottom in employment growth and GDP growth. She has also showed figures that state average building permit values in the province are down when compared to other provinces.
Wotherspoon said removing the tax would be one measure to help economic activity increase.
He said the PST the province would forgo would be offset by more people working and moving to the province.
“The choice to add the PST to construction labour was a mistake from day one, the epitome of a job killing tax that stuck our economy in the ditch,” he said.
Beck said “we need to get back to common sense in this province,” adding that the government needs to listen to local industry and municipal leaders.
[email protected]
I don't have any thoughts on this, other than noting the hilarity of the Sask Party bringing in a tax to distribute wealth and the NDP wanting to get rid of it to encourage investment.