The Province of Saskatchewan released their budget on March 23 and the Weyburn Chamber of Commerce has given it a passing grade.
"Clearly this is an election budget, so it's quite broad," said Chamber Manager Jeff Richards. "A commitment to reducing corporate income tax from 4.5 percent down to 2 percent is, without a doubt, a very positive move which will stimulate more investment and growth in Saskatchewan. This number will represent around $80 million in tax relief for business, and will allow for more jobs, higher wages, and investment into our businesses. The 2 percent rate still keeps Saskatchewan at number three in the country, but it will help us attract investment from outside of our borders."
In addition, the Government indicated that there would be a $5.6 million dollar reduction in education property taxes.
"There's still work to be done on property tax," said Richards, "but this is certainly another positive move."
Richards said that making Saskatchewan competitive is critical for growth, and the changes to the business tax regime are critical, as are personal income tax rates.
"This budget increases the basic and spousal exemption amounts to $14,535 and the dependent child amount to $5,514. With these changes, a family of four with a household income of $50,000 will save $2,447 in taxes this year. Lowering the amount of taxes we pay is a far more effective way of putting more money in people's pockets than raising minimum wage or increasing consumer taxes," concluded Richards.
The Chamber was glad to see the debt reduction moves which paid down $325 million, leaving the provincial debt at $3.8 billion - the lowest since 1988. Although these moves are positive, the Chamber will still be encouraging Government to be diligent in debt reduction.
