Saskatchewan residents may need to dig a little deeper into their wallets.
On Oct. 1., the provincial sales tax (PST) of six per cent will be implemented on admission and entertainment charges.
The sales tax will apply to sporting events, concerts, museums, movies, and green fees at golf courses.
Despite the announcement made in March, some business operators are still not welcoming the news.
“The industry is just starting to recover from two years of being closed or two plus years being closed. And this is like another blow,” Chief Executive Officer of TCU Place Tammy Sweeney told Global News.
Sweeney believes that taxing concert venues will discourage some residents to purchase tickets, saying that will have a ripple effect on other businesses when those out of town are looking for places to eat or shop.
“It also will impact other businesses around Saskatoon. Here in Saskatoon, like restaurants and retailers, and gas stations. So if there are fewer shows in Saskatoon, all of those businesses take a step down a little bit, too, and they’re not generating just the additional cost from those things,” Sweeney added.
Some businesses, including TCU Place, have recently advertised on social media to purchase tickets and merchandise ahead of October to avoid the tax.
Jason Childs, associate professor of economics at the University of Regina, said implementing the PST in these sectors may push consumers to view activities as luxuries than necessities.
“If you’re going to be doing partaking of small luxuries, you’re going to probably want to do them less frequently if you’re going to want to avoid the impact here. And six per cent is a significant increase,” he said.
“Where it’s going to hurt is particularly on those big-ticket entertainment items. So, you know, if you’re paying three or $400 for a ticket for a concert, six per cent is a big extra hit on that. If you’re paying $50 for a more local act or a smaller act, six per cent is going to bother you probably a lot less,” he added.
Childs said if the government is looking for more funding, adding a PST is the least volatile move.
“It’s going to hit different people at different income levels differently,” he began to say.
“From the government’s perspective, consumption taxes are more stable than income taxes or natural resource revenues. And it’s that stability in funding we need to base our program spending off of.”
A statement sent to Global News by the Ministry of Finance read, in part, “These changes are being made to improve revenue stability.”
“Changes largely mirror the GST rules that apply in all provinces that have a Harmonized Sales Tax,” the statement read.