Premier Brad Wall announced the expansion of the children's clothing Provincial Sales Tax (PST) exemption on Nov. 15. Originally exempting all clothing for children aged 14 and under, the amendment now includes clothing for children up to the age of 17.
"We made this announcement to make life a little more affordable for Saskatchewan families and today we are keeping our promise," Wall said. "We wanted to bring this tax break into effect right away, in time for families' Christmas shopping."
By increasing the age of eligibility, the government is expecting to see an additional loss of tax revenue of approximately $3 million a year, costing approximately $1 million for the remainder of the current fiscal year. The budgeted expense for the program during the 2011-12 fiscal year was allocated at $7.3 million, meaning a total expected cost of $8.3 million for this year.
Vendors are still required to maintain a record of the sale of adult-sized items however, are not required to maintain a separate record or declaration of the sale for child-sized items within a certain size range.
For further information, contact the Ministry of Finance at 1-800-667-6102 or visit www.finance.gov.sk.ca/taxes/pst.
