'Everything is on the table': Sask. finance minister doesn't rule out another PST hike

With two weeks to go until Saskatchewan's next provincial budget, the finance minister is being tight-lipped.

On Monday, Minister of Finance Donna Harpauer was asked if an increase in the Provincial Sales Tax (PST) from six to seven per cent was on the table.

"Always, everything is on the table," she said.

Harpauer said the province still has a shortfall in resource revenue and is committed to getting to balance by 2019-20.

"One of the things we'll be looking at is tightening our own belts as well and running more efficiently and effectively."

Last year the province raised the PST from five to six per cent and broadened the list of things PST applies to, adding restaurant meals and children's clothes among other things.

In February, Premier Scott Moe reinstated a PST exemption for agriculture, life and health insurance premiums that had been introduced last budget. Moe had promised these exemptions during his campaign for party leadership. The exemptions will cost the province $120 million in the upcoming budget.

In a third-quarter financial update released Mar. 2, the government projected a $595-million deficit at the end of the 2017-18 fiscal year. 

Last year it forecasted $2.05 billion in PST revenue. That number was lowered to under $1.93 billion in the third-quarter update.

If the government hiked the PST to seven per cent and didn't change what the PST applied to it could bring in roughly $315 million in new tax revenue.

NDP finance critic Cathy Sproule said the province is in "serious trouble" financially.

"Seven out of the last 10 years they have had deficits, our provincial debt has more than doubled in the last five years and the spending continues," Sproule said.

PST and HST across Canada

Among provinces with a PST, Saskatchewan has the lowest rate in the country.

• Alberta - No PST.
• Saskatchewan - 6 per cent.
• British Columbia - 7 per cent.
• Manitoba - 8 per cent.
• Quebec - 9.975 per cent.

Harmonized Sales Tax (HST)

• Ontario - 13 %
• New Brunswick, Newfoundland & Labrador, Nova Scotia and P.E.I. - 15%

Province taking $10.2M in recycling fees for first time

The province is looking to raise $16.6 million in increased fees and fines.

An increase in speeding ticket fines, effective May 1, is expected to bring in an extra $6.4 million.

The province is also hoping to bring in $10.2 million by increasing the environmental handling charge on beverage containers by two cents.

The environmental handling charge will now go into the province's general revenue fund for the first time, that $10.2 million will be split in half with $5.1 million going to SARCAN once the province and the recycler have a new contract signed.

Sproule called the additional fees on beverage containers a "backdoor tax" that like the PST on children's clothing affects families negatively.