Released on December 3, 2009
Incentives have been introduced for Saskatchewan's potash industry to encourage the creation of more corporate office jobs in the province.
Effective January 1, 2010, a deduction in determining the profit tax portion of The Potash Production Tax will apply to each new corporate office job located in the province. A lesser deduction will apply to positions already located in Saskatchewan. After five years, each new job would be treated as an existing job.
Energy and Resources Minister Bill Boyd said the changes represent a "win-win" situation for Saskatchewan.
"The net effect is expected to be an increased corporate presence in Saskatchewan for one of its key resource industries," Boyd said. "There are the obvious economic spin-offs that increased employment offers. It also reinforces Saskatchewan's positive climate for economic growth. This is a good place to be for all phases of your operation, not just primary production."
The cost of the incentive in foregone tax revenue should be offset by the additional revenue generated through job creation in the form of more corporate office positions located in the province.
Three companies currently operate mines in the province. Planned expansions to existing mines are expected to mean an additional $9.4 billion in investment by 2020. A number of other companies are also exploring the possibility of developing new mines.
Boyd said the mining industry continues to be a primary engine of growth in Saskatchewan.
"This province's potash reserves are massive," Boyd said. "Despite the cooling-off in sales in 2009, the various expansion plans show the industry remains committed to the province. We want to see all phases of their operations here. That's what this is about."
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For more information, contact:
Bob Ellis
Energy and Resources
Regina
Phone: 306-787-1691
Email: robert.ellis@gov.sk.ca