This is no April Fool’s joke – people in Saskatchewan will pay provincial sales tax on more items starting midnight April 1.
PST will be applied to children’s clothing, restaurant meals, snack foods, ready-to-go options at the grocery store, vehicle trade-ins and bulk fuel.
It’s part of an effort to trim a $1.2 billion deficit and the tax changes are estimated to add $900 million to the provincial coffers.
The PST was also increased one point to six per cent as of midnight on March 23.
For diesel, the PST exemption is being reduced to 80 per cent.
Alcohol taxes are looking at an increase as well of between four and seven per cent.
A 12-pack of Original 16 beer will cost an extra $1.93, while a 750ml bottle of Captain Morgan goes up $1.25. An $18 bottle of wine will cost an extra $0.95 as of midnight.
It will also cost more to do construction in Saskatchewan, as PST will now be applied to the labour portion of the contract.
For a typical contract that is 40 per cent material and 60 per cent labour, the PST will increase about 3.2 per cent on a renovation project and 2.5 per cent on a new house.
Contractors currently pay the PST on the cost of all building materials they purchase. As of April 1, materials will now be purchased PST-exempt.
The tax changes will also impact people shopping for a new ride as the trade-in value of vehicles will no longer be exempt from PST.
Previously, when a buyer traded in a $5,000 vehicle for a new $20,000 ride, PST would only be applied to the difference of $15,000.
With the new rules, buyers now pay the six per cent tax on the total $20,000.