PST on construction could have a $500,000 effect on N.B.
With PST now being charged on construction, North Battleford could have to pay an additional $500,000 which wasn’t budgeted for.
The provincial budget was released yesterday and not only was the PST increased from five to six per cent, but PST will also be charged on construction work where it wasn’t charged at all before. The city’s mayor, Ryan Bater, said of the all the new decisions in the budget, the application of the tax on construction work will have the biggest impact on North Battleford.
“The city does a lot of construction work,” Bater said. “Right now our finance team is working with the ministry as well as SUMA (Saskatchewan Urban Municipalities Association) to determine what this is going to look like. It is possible we are looking at upwards of $500,000 just for this year in unbudgeted costs.”
Bater said the costs weren’t considered when council was deliberating the municipal budget, because at the time PST wasn’t being charged on construction. The tax will be charged to the Underground Pipe and Asphalt Replacement (UPAR) program, which will be substantial, because tenders have already been developed and construction season is weeks away.