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Chamber reacts to provincial budget鈥檚 tax increases

The Estevan Chamber of Commerce isn鈥檛 surprised that there was an increase to the provincial sales tax (PST) in this year鈥檚 provincial budget.
Chamber

The Estevan Chamber of Commerce isn鈥檛 surprised that there was an increase to the provincial sales tax (PST) in this year鈥檚 provincial budget. The PST jumped from five per cent to six per cent in one of the most prominent moves for this year鈥檚 budget. 鈥淓veryone, I think, was just kind of waiting to see exactly how much it would be and what it would mean,鈥 said Jackie Wall, the chamber鈥檚 executive director. 鈥淚t鈥檚 only increasing by one per cent and there is a broader base on that.鈥 Wall predicted it will be particularly noticeable for those groups who will lose their PST exemptions, including the construction聽

industry, the restaurant industry and retailers who sell children鈥檚 clothing. 鈥淚 know the restaurant industry, especially right now in Estevan, is really feeling the downturn in the economy, so this is one more thing that may be an influence when people think about going out for a meal,鈥 said Wall. Nobody wants to see an increase in consumption taxes, but Wall believes it is better than a hike for income taxes. The discontinuation of the Saskatchewan Transportation Company (STC) was the biggest surprise in the budget, she said. STC will stop carrying freight in mid-May, and stop carrying passengers at the end聽

of that month. 鈥淎lthough when you look at their numbers, it鈥檚 not unexpected when they鈥檙e losing money on all but two of their routes,鈥 said Wall. 鈥淯nfortunately, there are a lot of people who do rely on STC for transportation, and a lot of those are elderly who use it for medical appointments, or who have limited access for driving a vehicle.鈥 Wall suspects a lot of chamber members, particularly those in the agriculture sector, have been using STC for shipping parts and other equipment. They will now have to rely on couriers and other companies for shipping. The increase in the education portion of prop

erty tax will also have an impact on members, since they will be paying more in property taxes. 鈥淭hey鈥檙e raising that (property taxes), but yet they鈥檙e cutting service to education. I think that鈥檚 unfortunate,鈥 said Wall. The cuts to post-secondary education are unfortunate, but Wall isn鈥檛 surprised they are happening. 鈥淏usinesses rely on those institutions for a trained workforce,鈥 said Wall. At the same time, Wall said it鈥檚 encouraging to see the decrease in personal and corporate income tax, since that will save some money for the chamber鈥檚 members.

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