Agrimart: PST Changes Will Benefit Farmers and the Agriculture Industry

Big changes are coming to the Provincial Sales Tax (PST) regulations, which should greatly benefit our farmers and agriculture industries. These changes should provide greater clarity to our farmers, as well as ensure that PST is applied fairly and consistently to farming and agriculture goods and services.

"After speaking with agricultural organizations in our province, we heard concerns that PST was inconsistently applied to farming and agricultural activity," Deputy

Premier and Finance Minister Donna Harpauer said. "The changes to the PST regulations will be more equitable, consistent, and protect farmers against perceived 'PST creep' in farming activity."

As of April 1st, 2022, new PST exemptions were implemented, which were made possible through regulatory changes. These Exemptions include:

•    Prefabricated windbreaker panels for use in the protection and handling of livestock.

•    Insulators for electrified livestock fences.

•    Certain farm equipment attached to a registered vehicle.

•    On-farm dugout excavation and trenching (in specific circumstances related to farming).

It was also clarified that the following products are also exempt from PST and are retroactive to April 1st, 2016:

•    Water storage tanks used in spraying or irrigating crops.

•    Storage tanks for weed control chemicals, insecticides, fungicides, herbicides, and liquid fertilizer.

•    Adjuvants that improve their efficacy or application. 

•    Portable seed cleaners used on-farm by farmers in preparing their crop for storage or market (farmers in the business of seed cleaning must pay PST on their seed cleaning equipment).

•    Farm tractors.

"While inflation and operating costs have been rising the last couple of years, cattle producers, and all farmers, simply cannot pass along higher costs including taxes," Saskatchewan Cattlemen's Association Chair Arnold Balicki said. "The recognition of this by the Government of Saskatchewan when it comes to PST on several important farm-related goods and activities is appreciated by Saskatchewan's cattle producers. Keeping this tax out of the industry helps keep it on a level and fair playing field, making us more competitive in the long run."

The yearly cost of these changes is estimated at $1 million. The Ministry of Finance has also begun discussions about modernizing the PST legislation regarding the agriculture and farming section, to potentially be considered in future budgets.