2007 Saskatchewan budget highlightsMarch 22, 2007 |
Economic Context
Measures Concerning Business
Measures Concerning Individuals
The Saskatchewan Minister of Finance, Andrew Thompson, presented the 2007 - 2008 Budget in the Legislative Assembly on March 22, 2007. The following is a summary of the highlights contained in the budget.
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Saskatchewan’s GDP growth is expected to remain strong at 2.9% in 2007 and 2.6% in 2008.
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Non-renewable resource commodity prices are expected to be at least maintained with current levels.
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Spending priorities include health care and provincial infrastructure.
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Continued reductions to corporate capital tax rate on existing capital from 0.3% to 0.15% with planned elimination in 2008.
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No corporate capital tax on new capital.
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Continued reduction in corporate capital tax resource surcharges from 3.3% to 3.1% in 2007 and 3.0% in 2008.
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Continued general corporate income tax rate reductions from 14% to 13.0% in 2007 and 12.0% in 2008.
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No provincial sales tax rate changes.
Note: All tax rate reductions are effective July 1 and were previously announced in the 2006 budget.
Measures Concerning Individuals
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New Graduate Tax Exemption effective for 2007 for an additional $10,000 per year of employment income earned by post-secondary graduates for the first five years with a five year carry forward for unused exemptions. Maximum savings are $1,100 per year.
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Effectively $20,000 of employment income will be tax-free.
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Graduates from non-Saskatchewan post-secondary institutions will also qualify for the exemption if they work in Saskatchewan.
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2006 graduates who qualified for the existing post-secondary graduate tax credit in 2006 ($850) will be eligible for the exemption for 2007 – 2010.
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Effective July 1, 2007, seniors will pay a maximum of $15 per prescription.
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University tuition freeze continued for its third year.
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No personal tax rate changes.
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No provincial sales tax rate changes.
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