$53M tax cut may not happen: Sask. government
Last Updated: Thursday, November 26, 2009 | 1:49 PM CT
CBC News
With a big hole in the budget looming, the Saskatchewan government now says it might have to delay a $53-million tax break that was promised eight months ago.
Thanks in large part to falling potash revenues, the province's finances have deteriorated by $1 billion since the March budget.
Back then, the province rolled out a $103-million education property tax cut
The province said it would cut and cap education property taxes for the three major property classes: residential, agricultural and commercial. It would then pay extra money to school divisions, so they wouldn't lose tax revenue.
The government says an additional $53-million reduction would come into effect in 2010.
But Education Minister Ken Krawetz now says that reduction may not go through.
"There may be a change to that promise and in fact we may not be able to do the same amount of change," he told reporters Thursday.
New Democrat MLA Pat Atkinson said the government made the tax cut pledge in the legislature on budget day and should live up to it.
"People of this province expect them to fulfill that promise," she said.
In a budget update earlier this month, the province said it would take money from a so-called rainy day account and from the Crown corporations to deal with the projected revenue shortfall.
It also plans to delay some spending on capital projects, such as a children's hospital.
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