A group of businesses and associations in Saskatchewan’s construction industry are expressing concern with a potential provincial sales tax on construction labour.
The Saskatoon and Region Home Builders’ Association says the average price of a new house could increase between $5,000 and $15,000 if a PST is implemented.
Homebuyers would be affected the most, but Saskatchewan’s economy would also suffer, the SRHBA says.
"We're going to have investments lowered (and) jobs will be affected,” said Chris Guerette, CEO of Saskatoon and Region Home Builders’ Association.
“Look at the competition on the national scene. B.C., Alberta and Manitoba do not charge PST on construction labour, so that will put (Saskatchewan) at a direct disadvantage.”
The provincial government confirmed in an email Friday the province is considering the move — applying PST to construction labour.
“Because of the revenue shortfall caused by the drop in resource prices, government is looking at all options,” the email read. “However, no decisions have been made as of yet.”
SRHBA and other construction businesses and associations are speaking with local MLAs on the matter.
