Saskatchewan government introduces affordability act with personal income tax savings

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This article was published 02/12/2024 (374 days ago), so information in it may no longer be current.

REGINA – Premier Scott Moe’s Saskatchewan Party government introduced Monday its promised legislation to lower personal income taxes.

The Saskatchewan Affordability Act states it will raise personal income tax exemptions while indexing tax brackets to match inflation, saving an average family of four more than $3,400 over four years.

Finance Minister Jim Reiter told reporters an estimated 54,000 residents will not pay provincial income tax once the changes are in place. The Saskatchewan Party had proposed the measures during the October election campaign.

“We want to get this done as quickly as we can,” Reiter said.

“Obviously that was a big campaign commitment for us. People want affordability and we would like to deliver on that.”

The legislation also includes a tax credit for first-time homebuyers, along with a credit for home renovations that would provide savings of up to $420 per year.

The bill also promises a 25-per-cent increase in tax credits for children under 18 with disabilities and for caregivers.

It keeps the small business tax rate at one per cent while doubling benefits for families to put their children in sports and arts.

Opposition NDP finance critic Trent Wotherspoon told reporters his party is prepared to support the legislation.

“We certainly won’t hold this up, but what we need is much more than that,” Wotherspoon said.

“We need action now to save families’ hard-earned dollars as they head into the holiday season.”

The Opposition has been pushing Moe to suspend the provincial 15-cent-a-litre fuel tax and axe the provincial sales tax on ready-to-eat grocery items. Two of their emergency motions on those issues have failed to pass in the house.

While speaking with reporters, Wotherspoon stood behind a table of groceries that have sales taxes imposed on them, including a rotisserie chicken, granola bars, pre-made salads and cut fruit and vegetables.

“Oftentimes people are going to (the grocery store) picking up a rotisserie chicken. This fruit (platter) is taxed, same with a veggie platter,” he said.

“These are the kinds of staples that families are relying on. We need to provide some relief.”

Reiter said the province won’t support the NDP’s proposals, arguing the government needs revenues for services.

“I don’t like taxes. I’d love to cut taxes everywhere but we have to have revenue to operate,” he said.

Reiter said he is to write a letter to the federal government to fast-track the approval of the personal income tax changes so residents can start seeing a break in January.

He said the tax reduction is to cost $140 million in the first year.

This report by The Canadian Press was first published Dec. 2, 2024.