Saskatchewan Finance Minister Donna Harpauer announced the PST exemption on both light used vehicles and Energy Star appliances will be discontinued. The expected revenue is $98 million.
The changes take effect Wednesday, April 11.
The change bring Saskatchewan in line with all other jurisdictions in Canada and charge PST on used, light vehicle sales. This applies to cars, minivans, pick-up trucks and all other personal vehicles and is anticipate to generate $95 million in revenue over the fiscal year.
There will be instances where used vehicles are PST exempt.
PST will not be charged on vehicles gifted to family members (spouses, children, parents, legal guardians, grandparents, grandchildren and siblings).
WATCH: Saskatchewan Budget 2018: No increase to tax rates
The PST will also not be applied to the private sale of a used vehicle with a purchase price of $5,000 or less.
- What is a halal mortgage? How interest-free home financing works in Canada
- Ontario doctors offer solutions to help address shortage of family physicians
- Capital gains changes are ‘really fair,’ Freeland says, as doctors cry foul
- Canada will take bigger economic hit than U.S. if Trump wins election: report
The Finance Ministry says energy savings already provide a strong financial incentive to buy Energy Star appliances. The removal of this exemption is expected to generate $3 million in revenue.
The personal income tax rate, the PST rate and education property tax rates will remain the same.
Missing from the budget is tax revenue collected from the sale of cannabis once it is legalized.
The government said it will receive 75 per cent of the federal cannabis excise duty generated in the province, along with PST, but is unable to forecast projected revenue as it is unclear what the size of the market and the retail price will be.
Comments