CLINE ANNOUNCES TAX CUTS, INCOME TAX REVIEW

Released on March 26, 1999

Saskatchewan people will see more money in their pockets as a result

of the 1999-2000 provincial budget, Finance Minister Eric Cline said

today.



"As of midnight tonight, the Education and Health (E&H) Tax rate will

be cut from seven per cent to six per cent," Cline said. "That is the

lowest rate of any province in Canada with a sales tax.



"In just three years, our government has taken one-third off the

provincial sales tax rate, putting $300 million dollars a year back

into the hands of families, businesses, municipalities, educational

institutions, school boards and health boards right across the

province."



The 1999-2000 Budget also includes Saskatchewan personal income tax

savings of $30 million a year, resulting from recent federal budget

measures.



"This year's personal income tax reduction complements Saskatchewan's

income tax reductions in 1995 and 1996 and the reduction in the

Personal Income Tax rate from 50 per cent to 48 per cent announced in

last year's budget," Cline said.



This is the fifth year in a row that there have been tax cuts for

families - building on income tax reductions in 1995 and 1996, a

two per cent cut to the PST in 1997 and two points off income tax

in 1998.



"Since our government was re-elected in 1995, we have cut income

taxes by more than ten per cent for an average family, and sales

tax has been cut by more than 33 per cent. We are committed to

further tax reduction, in balance with other important priorities

like debt reduction and targeting more resources for important

public services."



In addition to the sales and income tax cuts for families, the

1999/2000 Budget contains a number of business tax changes

including:



a new royalty structure to encourage exploration and

development of gold and base metals;



improvements to the Corporation Capital Tax for research and

development and for exploration and development; and



a lower Corporation Capital Tax rate for small financial

institutions.



"These changes further improve the competitiveness of

Saskatchewan's business environment," Cline said. "We will

continue to work with the business community to build a positive

climate for economic growth and job creation."



Cline also announced that the government will be reviewing

opportunities to re-design Saskatchewan's income tax system.



"We recently obtained the agreement of the federal government

that the provinces could re-design their own income tax systems

as early as the 2001 tax year," he said.



"Over the next 12 months, our government will be consulting with

Saskatchewan people on the design of a new personal income tax

system for Saskatchewan one which is simpler, fairer and more

responsive to the needs of Saskatchewan people and the

Saskatchewan economy."

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For more information, contact:



Sandra Lodoen

Saskatchewan Finance

Regina

Phone: (306)787-6578



Note: Please direct any inquires regarding the Education and

Health Tax to:



Revenue Division

787-6645



or



1-800-667-6102



Revenue offices will remain open Friday March 26 until 8 p.m.,

and Saturday March 27 from 8 a.m. to 4 p.m.