YORKTON — The Saskatchewan NDP is renewing its call for the province to eliminate the six per cent provincial sales tax on construction labour, arguing the levy is driving up costs for major projects planned or underway in the province.
The tax, introduced by the Sask. Party government in 2017, applies to construction labour and materials used to improve property. The Opposition estimates it costs builders about $484 million each year across Saskatchewan.
NDP Shadow Minister for Jobs and the Economy Aleana Young said the impact is being felt directly by municipalities like Yorkton, where several large infrastructure projects are either planned or long overdue.
“I found a way for taxpayers in Yorkton and the surrounding RMs to save six per cent on the construction of Grain Millers Road, a new hospital and the wastewater treatment plant,” Young said. “That’s for Scott Moe and the Sask. Party to get rid of their job-killing six per cent PST on construction labour.”
Young said many residents are already facing rising costs, from power bills to property taxes, while municipalities are under pressure to fund critical infrastructure.
“A lot of people don’t know that every time a city or municipality in Saskatchewan puts a shovel in the ground, there is a six per cent tax paid to the province,” she said. “That is a tax on growth, it’s a tax on construction, and it means less money stays in communities like Yorkton.”
She argued removing the tax would allow municipalities to stretch infrastructure dollars further, create more local jobs and reduce pressure on property taxpayers.
“If you have a project that’s $100 million, that’s $6 million going straight to the province,” Young said. “That’s $6 million that could be spent on construction, on roads, on recreation facilities, or on keeping property taxes lower.”
Young pointed to projects in Yorkton, including the long-discussed upgrade to Grain Millers Road, the need for a new hospital and investment in wastewater treatment infrastructure, as examples where costs could be significantly reduced.
She also referenced recent decisions in Regina, where city council has raised concerns about property tax increases and the added burden of the construction tax on municipal projects.
“There is a direct link between people’s property taxes going up and this six per cent PST on construction for cities,” Young said. “Municipalities are reaching a breaking point.”
The NDP has opposed the construction tax since it was introduced, and Young said rising construction and material costs have only made the issue more urgent.
“This is about stopping one level of government from taxing another and keeping more money where it belongs, in communities like Yorkton."
