The Estevan Chamber of Commerce isn’t surprised that there was an increase to the provincial sales tax (PST) in this year’s provincial budget. The PST jumped from five per cent to six per cent in one of the most prominent moves for this year’s budget. “Everyone, I think, was just kind of waiting to see exactly how much it would be and what it would mean,” said Jackie Wall, the chamber’s executive director. “It’s only increasing by one per cent and there is a broader base on that.” Wall predicted it will be particularly noticeable for those groups who will lose their PST exemptions, including the construction
industry, the restaurant industry and retailers who sell children’s clothing. “I 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,” 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
of that month. “Although when you look at their numbers, it’s not unexpected when they’re losing money on all but two of their routes,” said Wall. “Unfortunately, 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.” 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. “They’re raising that (property taxes), but yet they’re cutting service to education. I think that’s unfortunate,” said Wall. The cuts to post-secondary education are unfortunate, but Wall isn’t surprised they are happening. “Businesses rely on those institutions for a trained workforce,” said Wall. At the same time, Wall said it’s encouraging to see the decrease in personal and corporate income tax, since that will save some money for the chamber’s members.
