SASKATCHEWAN SALES TAX CREDIT PAYMENTS IN THE MAIL

Released on October 6, 2000

Saskatchewan residents who are eligible to receive the new Saskatchewan Sales

Tax Credit (SSTC) will receive their first payments this month.



The new Tax Credit provides a $32 million per year offset against the impact of

the Sales Tax on lower income residents. Families earning up to $35,000 a year

are eligible to receive the SSTC. The Credit was announced in the March, 2000

Budget and came into effect April 1.



"Tax fairness is an essential principle of Saskatchewan's tax reform

initiative," Cline said. "Everyone pays less income tax under tax reform and

the Provincial Sales Tax (PST) is now much fairer."



Cline noted the new Credit is just one of several measures in the 2000 Budget

that take effect this year. "SSTC benefits come on the heels of a 50 per cent

reduction in the Flat Tax this July. In another three months - January 1, 2001

- the Flat Tax, Debt Reduction Surtax, and High Income Surtax will be abolished

completely. Saskatchewan taxpayers will see a net tax cut of almost $44

million this fiscal year, growing to $260 million once tax reform is fully

implemented in 2003."



SSTC is fully funded by the Province but administered by the Canada Customs and

Revenue Agency on Saskatchewan's behalf. SSTC payments will be included with

the Federal Goods and Services Tax Credit (GSTC). The initial payment will

cover the period April - December, 2000. After that, payments will be made on

a quarterly basis.



SSTC provides up to $77 for an individual, $77 for a spouse, and $55 per child

(up to $110 per family) for a maximum annual credit of $264 per family. The

amount received depends on family net income, and the Credit begins to be

reduced once family income exceeds $8,600. It is fully refundable, meaning a

person does not have to pay income tax in order to receive the benefits. A

recipient must simply have filed an income tax return and applied for the GSTC

on that return. A recipient must also be a resident of Saskatchewan as of

October 1, 2000, and meet the net income thresholds.



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For further information, contact:



Sandra Lodoen

Saskatchewan Finance

Regina

Phone: (306)-787-6578