The 1% Windfall Profits Surcharge would also cancel Sask. Party’s PST hike
REGINA - Today, Official Opposition Leader Ryan Meili and Opposition Finance Critic Trent Wotherspoon proposed a windfall profit resource surcharge to deliver a cost-of-living dividend to address the affordability crisis, allowing Saskatchewan people to share in windfall non-renewable resource profits amid 31-year high inflationary pressures.
“Budgets are about choices. In this last budget, the Sask. Party chose to hit Saskatchewan people with more taxes and higher utility fees at a time when they should be working with municipal and federal governments to address the affordability crisis,” said Meili.
The Official Opposition called on the government to add 1% Windfall Profits Surcharge to the provincial resource surcharge when WTI oil prices exceed $90(US) per barrel and/or potash prices exceed $700(CDN) per K20 tonne. This small increase could add $250 million to provincial coffers this fiscal year.
With this surcharge, the government could scrap the PST increase in the budget and immediately rebate $125 million by way of cost-of-living dividends to every Saskatchewan household. The additional proceeds should be split between an urgent investment into our health system to address the generational challenge in health care and into a fund for energy efficiency building retrofits including renewable energy options for homes, businesses and farms to create jobs, make utility bills more affordable and reduce emissions - securing a legacy for tomorrow.
“We face an extraordinary situation. As a result of the unforgivable invasion of Ukraine, already strong profits in our resource sector have been sent soaring. Meanwhile, the owners of those resources, the people of Saskatchewan, are being squeezed every which way by affordability pressures,” said Wotherspoon. “A modest windfall profits surcharge will continue to ensure the success and profitability of our critically important energy and potash sectors while providing much-needed relief to Saskatchewan people and leaving a lasting legacy. These resources belong to the people of Saskatchewan.”