Saskatchewan clarifying certain on-farm PST exemptions
More items to be specified as exempt in tax regulations
| 2 min read
By Dave Bedard
Insulators for electric fencing will be a black-and-white PST-exempt expense for ranchers in Saskatchewan starting April 1, 2022. (Gallagher.com)
Saskatchewan farmers’ and ranchers’ concerns about some inconsistencies in how and when provincial sales tax is applied to purchases of on-farm equipment will be dealt with in a revised list effective late next week.
The province said Wednesday in a budget release that a “number of clarifications” will be made to its Provincial Sales Tax (PST) Regulations effective April 1 relating to “farming and agriculture activities.”
Noting such lists are reviewed each year, a finance ministry spokesperson said Thursday the changes being made are “relatively small” in terms of reduced provincial tax revenue, at about $1 million per year.
The list of items and activities to be specifically included in the list of on-farm PST exemptions starting April 1 are expected to address concerns raised by producers over what they viewed as “PST creep.”
The province thus consulted with ag groups on what their members viewed to be “unfair or inconsistent” application of PST.
“While not significant in dollar value, these changes will clear up a number of issues included on these lists,” the ministry spokesperson said via email.
Items, services and activities to be specifically listed as PST-exempt for on-farm use starting April 1 include:
- corral slabs and windbreaker panels;
- insulators for electrified cattle fences;
- portable seed cleaning equipment, if used on-farm and not by for-profit operators of mobile custom seed cleaning services;
- certain chemical storage tanks and water storage tanks;
- crawler tractors, if to be used on-farm and not in the construction sector;
- on-farm digging of dugouts; and
- on-farm trenching for “certain irrigation and electrical purposes.”
The updates to the PST code will also further clarify the exemption for “certain farm equipment attached to a registered vehicle,” the ministry said.
The ministry said it also plans to start discussions with the goal of “modernizing” the agriculture and farming sections of the Provincial Sales Tax Act.
Those changes, the ministry said, may “potentially be considered by the government as part of the 2023-24 budget development cycle.” — Glacier FarmMedia Network
