SASKATOON – Saskatchewan credit unions have received strong public support to be taxed the same as banks.
The Saskatchewan government is facing a decision on whether to eliminate a provincial tax deduction for its credit unions and the trade association for 53 Saskatchewan credit unions says the new taxes being considered would see credit unions taxed at a higher rate than banks.
To gauge public opinion on the issue, SaskCentral, the trade association for Saskatchewan credit unions, engaged Abacus Data to survey 1,000 eligible Saskatchewan voters over the phone in January.
Of those surveyed, 78 per cent agreed credit unions and banks should be treated fairly to reflect their differences and 63 per cent believe the provincial government should preserve the existing tax framework in place for credit unions.
Another 82 per cent believe credit unions play an important role in the province’s economy.
Saskatoon’s Affinity Credit Union says if the province does increase taxes, it will wipe over $3 million from their bottom line, putting jobs at risk and leading to tough choices.
“Some of the choices would be to just simply not be as competitive as our big bank counterparts or we could potentially not be as active in the communities in terms of the dollars that we give to communities,” said Lise de Moissac, chief financial officer for Affinity Credit Union.
The province is expected to make a decision on the tax framework in the spring budget.
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