The Canadian Taxpayers Federation (CTF) is asking the provincial government to stop charging Provincial Sales Tax (PST) on construction labour. .This appeal comes after the federal government announced it is no longer applying the Goods and Services Tax to new rental housing construction..“Saskatchewan needs to follow the federal government's lead and remove the PST from construction to make housing more affordable,” said Gage Haubrich, Prairie director of CTF. .“Cutting taxes is the most effective way to help families make ends meet.”.On Thursday, the Trudeau government said it would stop charging the Goods and Services Tax for new rental apartment building construction..Since 2017, the PST has been charged on construction labour in Saskatchewan. Also, the government charges PST on construction materials..The government will collect more than $2.87 billion in PST revenue this year, which represents an increase from the $2.72 billion collected in the previous year..In Saskatchewan, more than one in six households spends more than 30% of their household income on housing costs..Saskatoon and Regina have both seen average home prices reach all-time highs..Premier Scott Moe recently pledged to address issues related to affordability and housing costs..“Housing is often the highest cost a family faces in their budget,” said Haubrich. .“Taking PST off of construction projects would help builders be able to build more homes and help families afford to buy them.”
