INCOME TAX ACT REDUCTION TAKES EFFECT

Released on June 30, 1998

Finance Minister Eric Cline today confirmed that the two point

reduction in the Provincial Income Tax (PIT) rate, announced in the

1998-99 Budget, will take effect July 1.



"We are committed to tax reduction that is fair, affordable and

sustainable," Cline said. "This reduction in the PIT rate, from

50 per cent of federal tax to 48 per cent, will leave an additional

$45 million a year in the pockets of Saskatchewan taxpayers. Combined

with previous tax cuts, families earning $50,000 a year will be better

off by almost $600 a year."



The Government of Saskatchewan balanced its budget in 1994-95 and has

reduced taxes for families in every budget since. A $55 million per

year income tax reduction was introduced in 1995 and fully implemented

in 1996, benefiting all Saskatchewan taxpayers and taking 6,000 lower

income families off the tax rolls. In 1997 the Government lowered the

Education and Health Tax from nine per cent to seven per cent, leaving

an additional $180 million in taxpayers' pockets every year.



Tax reduction is one element of the government's balanced approach,

which includes debt reduction and service enhancements.



"By March 31, 1999, Saskatchewan's debt is estimated to be less

than 42 per cent of our annual gross domestic product, compared

to nearly 70 per cent in 1991," Cline said. "In the current

fiscal year, we have also provided significant funding increases

to improve services like health, highways and education.



"This balanced approach ensures that the benefits of our growing

financial freedom are enjoyed by all Saskatchewan people."





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For more information, contact:



Sandra Lodoen

Saskatchewan Finance

Regina

Phone: (306)787-6578