When the 2018-19 budget was presented last Tuesday, organizations expressed varying levels of contentment with it.
One of them was the Saskatchewan Auto Dealers Association.
They reacted positively to it, especially to the inclusion of the PST tax exemption on the sale of used cars up to $5000.
Government Relation Chairman for the SADA Morris Plemel said he actually believes the tax will be beneficial for the local auto sector.
“Quite honestly, the entire Saskatchewan Auto Dealers Association and all their members, like this tax,” he said. “We support it.”
Plemel noted it creates a fair and level playing field, making sure they’re collecting tax like the other jurisdictions across the country do.
Plemel further elaborated on how the tax will do that.
“If we take a new vehicle sale, the trade in allowance on that vehicle is now going to be discounted 6%, but the customer will only pay tax on the difference,” he said. “The transaction price will remain the same.”
“Subsequently, when we sell that used vehicle, we will sell it for 6% less than we did before, throw the 6% sales tax in and it’s the same price again.”