Finance minister Ken Krawetz has been travelling around the province promoting the provincial budget and the advantage he sees it giving residents. He was recently in Yorkton for a Chamber of Commerce luncheon, with a focus on the tax benefits.
The education property tax reforms were one of the biggest changes in the new budget, and Krawetz says that it was a process that began from the beginning of the government's formation. He says that they had been committed reduce education taxes on individuals and to fund education from the provincial coffers. The provincial budget sees that promise come to fruition, and Krawetz emphasizes that $55.6 million will be saved with the change to the taxes.
The primary driver for these reductions is a reduction in mill rates across the board. He says that this consistency province-wide is one of the most important parts of the reforms. The mill rates have changed to 3.91 for agricultural property and 9.51 for residential. Krawetz also says this change will save thousands of dollars for every Saskatchewan resident.
Apart from the education property tax, income tax will also be seeing changes. The increased basic tax exemption and spousal exemption will be both rising by $1,000, and he notes that this means 114,000 people will be off the tax rolls.
While that is one of the big benefits of the change, Krawetz emphasizes that this change is one which will help a variety of people. He notes that while the most obvious beneficiaries are those with low incomes, it also benefits those who work part time and a wide spectrum of families. He notes that with increases to the child tax exemption, along with other programs a family of four can earn up to $45,550 tax free.
It is one of the best in Canada, and in Western Canada it is the best," Krawetz notes.
Outside of taxes, he also expressed pride in not only presenting a balanced budget, but one with a surplus.
He says given the way the government works, half of that surplus will be directed to paying down the debt and the other half towards the growth and security fund.
Krawetz notes that this will help the province in the future, and is already saving money.
He also says that other advantages can come from this, as it makes the province a more attractive place to invest.
