SUMA wants province to stop charging PST for construction projects

Saskatchewan municipalities say that new tax pressures are limiting the amount of construction work getting completed in the province.

Local representatives want the province to stop charging PST for projects.

Randy Goulden, president of the Saskatchewan Urban Municipalities Association (SUMA), said it cuts how much work gets accomplished since the PST applies to the cost of the project.

“Now it’s really hindering our municipalities from increasing and helping to really decrease the infrastructure deficits that are setting in our communities,” she said.

Municipalities were exempt from paying the PST on construction labour until 2017. Now it’s a complaint heard by the NDP when they visit many town offices.

“This is a government that we see out making infrastructure announcements, holding press conferences, patting themselves on the back and showing up for photo ops, all while they close back between 24 and 39 per cent of that so called investment,” said NDP leader Carla Beck.

The provincial government points out that municipalities receive a share of PST dollars collected, three quarters of one per cent. It says the remainder goes to services like schools and hospitals that benefit communities.