Released on November 9, 2006
Saskatchewan residents will see $28.1 million in personal income tax savings next year as the government indexes the Personal Income Tax (PIT) system to the national rate of inflation, Finance Minister Andrew Thomson announced today.Income tax brackets and tax credits for 2007 will be increased by 2.2 per cent.
"We are enjoying a prosperous economy, which affords us the opportunity to continue providing meaningful tax relief to the citizens of Saskatchewan in 2007," Thomson said.
Today's announcement of full indexation protects Saskatchewan residents from 'bracket creep' where income tax credits decrease and income taxes increase as a result of inflation-based adjustments to personal income. It also helps maintain 'buying power' for wage earners and pensioners. The income tax brackets, basic and spousal credits, senior supplement, dependent child credit, age credit, disability-related credits, medical expense credit and the Saskatchewan Sales Tax Credit are all indexed to ensure that their value to taxpayers is not eroded by inflation.
The inflation-based indexation adjustment is determined from the annual change in the national Consumer Price Index. For the 2007 tax year, the indexation factor is 2.2 per cent.
"These changes will provide average Saskatchewan families with real tax savings in the next year, and build on our commitment to ensure Saskatchewan people continue to share in the prosperity we are enjoying today.
"In the past year alone, we have reduced taxes by over half-a-billion dollars. This includes cuts to property taxes, corporate taxes, small business taxes, sales taxes and now income taxes," Thomson said. "In doing so, we are making life even better for Saskatchewan families and making this province an even better place to live, work, and raise a family."
The attached backgrounder offers more information about indexation.
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For More Information, Contact:
| Debbie Clark Finance Regina Phone: 306-787-8109 Email: dclark@finance.gov.sk.ca |