Released on May 6, 1998
Finance Minister Eric Cline today introduced amendments to The IncomeTax 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