Warren Kaeding MLA, Report from the Legislature Aug, 2017

Aug 31, 2017

Saskatchewan residents who pay income tax will soon be paying less and Saskatchewan people with lower incomes will receive a boost in their tax credit amounts.

Starting July 1, 2017, Saskatchewan Personal Income Tax rates will drop by half a percentage point, supporting our government’s growth agenda and improving Saskatchewan’s tax competitiveness.

Saskatchewan Personal Income Tax rates will drop by another half point on July 1, 2019.

Combined, these two reductions will save a single Saskatchewan taxpayer, with no dependents and an annual income of $50,000, about $77 per year. This person’s 2020 Saskatchewan Personal Income Tax will be $308 lower than his or her 2016 Saskatchewan Personal Income Tax.

Similarly, a married couple with two children and an annual family income of $100,000, will save about $117 per year. This family’s 2020 Saskatchewan Personal Income Tax will be $468 lower than their 2016 Saskatchewan Personal Income Tax as a result of these tax reductions.

Saskatchewan Low-Income Tax Credit amounts are going up with the maximum basic adult, spouse and equivalent-to-spouse amounts increasing by $100. Dependent child amounts are increasing by $40 per child. This boosts the maximum annual family benefit by 41 per cent.

In support of our growth agenda, Saskatchewan’s general Corporate Income Tax rate will be reduced from 12 per cent to 11 per cent in half-point increments, effective July 1, 2017 and July 1, 2019. At 11 per cent, Saskatchewan’s general Corporate Income Tax rate will be tied with British Columbia for the lowest in Canada, and will be one percentage point lower than Alberta’s rate.

Shifting tax away from income through lower personal and corporate income tax rates, and onto consumption through an expanded PST, encourages productivity and keeps our economy strong.

The Manufacturing and Processing Profits Tax Reduction is being maintained, meaning that Saskatchewan’s effective Corporate Income Tax rate on eligible manufacturing and processing income can be as low as 9% — the lowest tax rate on manufacturing and processing in the country.

Saskatchewan is known for growing, making and mining what the world needs. The sustained growth of Saskatchewan’s wholesale trade – second best in the nation – is attracting investments and new opportunities and highlights continued confidence in the province’s economy.

Most key indicators for Saskatchewan’s economy have been positive so far in 2017, including:

  • the third-highest growth among Canadian provinces in manufacturing sales;
  • the third-highest growth in average weekly earnings;
  • the third-highest growth in population; and
  • the second-highest growth in new motor-vehicle sales.

Private sector forecasters have recognized strength in Saskatchewan’s economic performance and have increased real GDP growth forecasts for 2017 from an average of 1.7 per cent at budget to 2.1 per cent.