Saskatchewan needs to remove provincial sales tax from construction

Author: Gage Haubrich 2023/09/15

SASKATOON, SK: The Canadian Taxpayers Federation is calling on the provincial government to remove provincial sales tax from construction labour after it was reported that the federal government is removing its goods and services tax from new rental housing construction.

“Saskatchewan needs to follow the federal governments lead and remove the PST from construction to make housing more affordable,” said Gage Haubrich, CTF Prairie Director. “Cutting taxes is the most effective way to make to help families make ends meet.”

Yesterday, the federal government announced it would remove GST from new rental apartment buildings.

The PST was imposed on construction labour in Saskatchewan in 2017. The government also imposes PST on construction materials.

The government plans to collect more than $2.87 billion in PST revenue this year. That’s up from $2.72 billion collected last year.

In Saskatchewan, over one in six households spends 30 per cent or more of their total household income on housing. Both, Saskatoon and Regina benchmark home prices recently reached all time highs.

Moe also recently committed to take action on affordability and housing costs.

“Housing is often the highest cost a family faces in their budget,” Haubrich said. “Taking PST off of construction projects would help builders be able to build more homes and help families afford to buy them.”

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