The Government of Saskatchewan has introduced promised legislation to lower personal income tax in the province. Touted as the Saskatchewan Party’s response to cost-of-living concerns – the Saskatchewan Affordability Act will implement 13 affordability commitments that the party outlined during the recent election campaign. “We want to get this done as quickly as we can,” Minister of Finance Jim Reiter told reporters after Question Period Monday. “Obviously, that was a big campaign commitment for us and people want affordability, and wed like to deliver on that.” The act will introduce the “largest personal income tax reduction in the province since 2008.” The party claims the act will save the average family of four earning $100,000 more than $3,400 over the next four years. Two seniors with a combined income of $75,000 will save $3,100 over the same period. The party says upon full implementation, over 54,000 residents will no longer be paying provincial income tax. The act will also see the Saskatchewan low-income tax credit increase by five per cent annually for the next four years in addition to annual indexation adjustments – said to benefit 300,000 across the province. The small business tax credit will remain at one per cent. Additionally, improvements to the First-Time Homebuyers Credit and Graduate Retention Program are also outlined in the act. NDP MLA and Finance Critic Trent Wotherspoon spoke to reporters after the act was introduced in the assembly. He stood behind a table full of groceries – including sandwiches, yogurt, cereal, a vegetable platter and a rotisserie chicken. One of the NDP’s election promises was to remove the Provincial Sales Tax (PST) off groceries as a form of affordability relief for families. “They dont even understand what foods theyve applied the tax to. These are staples for Saskatchewan families. Theyve been completely out of touch and asleep with the switch and providing any cost-of-living relief,” he said. “Any relief is well off a year or more before those impacts will be felt. Saskatchewan people need relief now.” Reiter defended his government’s position, arguing that the province does not charge PST on basic groceries. “There is PST on prepared foods. Theres also on chips, theres also on candy,” Reiter argued during Question Period. “Theres no PST on bread, there is no PST on milk, there is no PST on meat, there is no PST in vegetables, there is no PST on fruit.” Reiter says he will be in contact with the federal government and CRA to ensure the act’s measures are enacted as soon as possible. “Theyll kick in, and theyll be available for people January 1. The question is, at what point will they first be taken off peoples paychecks? Were optimistic the federal government will agree to fast track that. They did that with their GST changes just last week.” While the government and opposition hold differing opinions on the best path for affordability relief, Wotherspoon said his party will not stand in the government’s way. “At the end of the day, theyve been elected with their measures, and we will accept those measures moving forward,” he explained. But the point is, the hardship is real right now for families. Theyre working so damn hard just to make ends meet, and we believe there needs to be measures now that step up to the plate and extend relief and savings through this winter season, through the holiday season.
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