A Regina car salesman is shocked the Saskatchewan government has added the provincial sales tax (PST) to used cars valued over $5,000.
“A lot of (families) have trouble affording vehicles as it is right now, and they’ve stretched their budget to the limit, so to add another $600 onto an automobile is going to make it tough for them,” said Anderson Auto Sales manager Rod Dorn, adding most families have a budget of around $10,000.
He said having to pay that extra six per cent could make or break some low-income families.
“(The government is) hitting the wrong people. Poor people buy the used cars — they’re the ones that can’t afford those new cars,” Dorn said.
Having to tell a family they have to pay more for the used car they can barely afford isn’t going to be an easy conversation, he added.
“Trying to explain to them that they have to pay another tax — that’s going to be tough.”
Those selling vehicles to certain family members including spouses, parents or legal guardians, children, grandparents, grandchildren or siblings will not have to pay any tax.
However, those making car sales over $5,000 privately or through a dealership will have to pay PST.
The previous PST exemption has also been lifted for Energy Star appliances.
The changes take effect Wednesday