Released on August 14, 2003
Two new initiatives for Saskatchewan's potash industry will increase jobs and investment in the province and ensure the sector remains the world's largest supplier.Premier Lorne Calvert today announced the elimination of profit tax on new potash sales and the introduction of faster capital write-offs to help make the industry more globally competitive and attract new investment. Over the next two years, the government will work on simplifying the potash tax system.
He said the tax changes will help the industry to realize its immense growth potential. Potash sales and investment are expected to increase as a result of the tax changes. This will result in new jobs and new infrastructure expenditures by the industry.
"Saskatchewan's potash industry generates thousands of jobs and significant prosperity that are vital to the health of our economy, particularly in rural areas," Calvert said. "The industry is a key contributor to Saskatchewan's wide-open future, and these measures will enhance our business climate by attracting new money to the province."
By conservative estimates, Saskatchewan could supply current world demand for potash for several hundred years. Saskatchewan has the largest potash industry in the world, supplying 35 per cent of world demand. Potash sales in 2002 equalled $1.7 billion. The industry generated about $250 million last year for the provincial government in royalties and taxes.
"The new tax initiatives show good faith by the Saskatchewan government that potash is important to this province," Saskatchewan Potash Producers Association Chair Bill McClung said. "We have world-class operations that will provide Saskatchewan with jobs for years to come and these measures will help our industry to consider capital expansion opportunities."
The potash tax initiatives are in addition to the $2.1 million, six-year mineral exploration incentive program that was introduced last fall.
-30-
For More Information, Contact:
| Bob Ellis Industry and Resources Regina Phone: (306)787-8983 |