Exemptions recently announced by the provincial government include windbreak panels and electric fence insulators
Recent changes to Saskatchewan’s provincial sales tax are expected to bring new exemptions for farmers and ranchers.
A Saskatchewan government news release on May 20 stated that as of April 1, new PST exemptions will include the following:
- pre-fabricated windbreaker panels for use in the protection and handling of livestock
- insulators for electrified livestock fences
- certain farm equipment attached to a registered vehicle
- on-farm dugout excavation and trenching (in specific circumstances related to farming)
The province also outlined previous exemptions for some products:
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- water storage tanks used in spraying or irrigating crops
- storage tanks for weed-control chemicals, insecticides, fungicides, herbicides and liquid fertilizer
- adjuvants that improve spraying efficacy or application
- portable seed cleaners used on-farm by farmers in preparing their crop for storage or market (farmers in the business of seed cleaning must pay PST on their seed cleaning equipment)
- farm tractors
Saskatchewan Cattlemen’s Association chair Arnold Balicki said in the news release that “keeping this tax out of the industry helps keep it on a level and fair playing field, making us more competitive in the long run.”
The announcement comes after the province said agricultural spending would increase by nearly $73.5 million to $462.4 million in the 2022 budget.
“While inflation and operating costs have been rising the last couple of years, cattle producers, and all farmers, simply cannot pass along higher costs including taxes,” said Balicki.
Deputy Premier and Finance Minister Donna Harpauer said the changes were made to address concerns from the agriculture sector.
“After speaking with agricultural organizations in our province, we heard concerns that PST was inconsistently applied to farming and agricultural activity,” she said in the release. “The changes to the PST regulations will be more equitable, consistent and protect farmers against perceived ‘PST creep’ in farming activity.”
The release also stated that “the Ministry of Finance is also beginning discussions about modernizing the agriculture and farming section of PST legislation.”
Deb Clark, communications director at the Ministry of Finance, said those changes “would help to reflect the technological evolution in farming.”
