AMENDMENTS TO INCOME TAX ACT INTRODUCED

Released on May 6, 1998

Finance Minister Eric Cline today introduced amendments to The Income

Tax Act which will provide legislative authority to move forward on

tax measures announced in the spring Budget.



"On our way to balancing the budget, we promised the people of

Saskatchewan that we would reduce taxes as it became affordable,"

Cline said. "This legislation confirms that commitment."



The proposed amendments will allow the implementation of:



a reduction in Saskatchewan's Personal Income Tax rate from

50 per cent of Basic Federal Tax to 48 per cent, effective

July 1, 1998;



a non-taxable Saskatchewan Child Benefit;



a 15 per cent non-refundable Research and Development Tax Credit;

and,



a refundable Film Employment Tax Credit.



"Beginning in July, families across the province will see a difference

in their pay cheques as a result of the reduction in the Personal

Income Tax rate," Cline said. "Over a full year, this will mean an

extra $45 million that stays in the pockets of Saskatchewan taxpayers.



"The Saskatchewan Child Benefit will also significantly improve

provincial benefit levels for lower income families with children

while establishing a new level of federal-provincial co-operation in

delivering family benefits."



Cline further noted that the targeted tax incentives for

industry, enabled by the legislation, will "encourage growth and

jobs in the research and development sector and create an

exciting new opportunity for Saskatchewan's film industry to

compete on the world stage."



The amending Bill also includes technical amendments clarifying

the details of the various provincial manufacturing and

processing tax incentives.



"It is a pleasure to introduce this legislation," Cline said.

"It represents the growing benefits of financial freedom gained

through the hard work and sacrifice of Saskatchewan people."



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For more information, contact:



Sandra Lodoen

Saskatchewan Finance

Regina

Phone: (306)787-6578