The two per cent cut in Saskatchewan's provincial sales tax will not be followed by one in Manitoba — at least not for the time being, Finance Minister Greg Selinger said Friday.
The Saskatchewan government announced Friday it will lower its PST from seven per cent to five per cent. The cut takes effect midnight Friday.
Saskatchewan Finance Minister Andrew Thomson said the province has been flush with revenue thanks in large part to surging oil prices. That province decided to introduce the PST reduction before people start their holiday shopping.
With a five per cent PST, Saskatchewan will have the lowest provincial sales tax in Canada after Alberta, which doesn't charge any provincial sales tax. Manitoba currently has a seven per cent PST.
Selinger said the provincial government has its own ways of giving people tax breaks.
"We have a lower property tax on residential properties than Saskatchewan does. We have a lower tax on farmland than Saskatchewan does. Our gas tax is four and a half cents lower than theirs is, and our small business tax is lower than theirs is," he said Friday.
Selinger added that the province's current priorities include reducing small business taxes by 67 per cent, eliminating the education support levy on residential homes and reducing farmland taxes by 60 per cent.
He said the province also want to keep its gas tax at 11.5 cents — "the second lowest in the country … when Saskatchewan is up to 15 cents."
Selinger said a one percent cut in Manitoba's PST would cost the province more than $150 million in revenue.
As for any future plans to reduce the PST, Selinger said that decision would not come until the next budget, which is expected in the spring.
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