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BUDGET PROVIDES TAX REBATE FOR AGRICULTURE

Released on March 24, 1997

Saskatchewan Agriculture and Food Minister Eric Upshall announced today
that this year's budget includes a tax rebate program aimed at tripling
hog production by 2005 and diversifying other kinds of agriculture.

The Livestock and Horticultural Facilities Incentive Program will provide
for an annual rebate on Education and Health Tax paid on building
materials used in livestock operations and horticultural facilities,
including hog barns, greenhouses and vegetable and raw fruit storage
facilities. Individuals, partnerships, cooperatives and corporations may
apply for a refund of the Education and Health Tax paid on eligible
materials and equipment in each calendar year, subject to a $500
deductible.

"This tax rebate program will assist in the diversification of the rural
economy by creating a favorable climate for investment in the
construction of livestock and horticultural facilities," Upshall said.

The minister said that the tax rebate addresses many of the concerns
operators of intensive operations had about paying taxes on materials
used for primary production. It will also place Saskatchewan on a more
level playing field with other provinces respecting sales taxes.

"This program is an example of the government using selective tax
incentives to assist in creating an environment for development and
diversification of our rural economy and the creation of jobs," Upshall
said.

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For more information, contact:

Harvey Johnson
Saskatchewan Agriculture and Food
Regina
Phone: 787-6395

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