Saskatchewan adds PST to used vehicles in 2018-19 budget

The provinces 2018-2019 budget eliminates the PST exemption for used light vehicles. Global News

Saskatchewan residents won’t be paying more for PST this year, but similar to last year, residents will be paying more for certain items.

The province’s 2018-19 budget eliminates the PST exemption for used light vehicles. This means if you purchase a vehicle for $17,000, you will now pay more than $1,000 in taxes.

READ MORE: Saskatchewan projecting $365M deficit in 2018-19 budget

This move aligns Saskatchewan’s tax treatment of used vehicles with every other jurisdiction in Canada that has a sales tax.

There will be exemptions for used vehicles sold privately and purchased for less than $5,000. Exemptions will also be made for used vehicles gifted between family members.

The budget does restore the trade-in-allowance when determining PST. This means PST is only applied to the difference between the value of the trade-in and the selling price of the vehicle being purchased.

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“It is a very fair and transparent system,” government relations chair with the Saskatchewan Auto Dealers Association, Maurice Plemel, said. “It’s very easy to understand, there’s less administration involved and that is a benefit to all of our consumers, no question about it.”

The PST exemption on Star Energy Appliances is also being discontinued. These changes are expected to take place on April 11.

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