Cattle Feeding Industry
Res #: 19-06A
Responses Received: No
Departments: Saskatchewan Finance
Resolution No. 19-06A
WHEREAS, a greater cattle feeding industry would benefit rural Saskatchewan; and
WHEREAS, in order to grow the cattle feeding industry in Saskatchewan a more investor-friendly climate needs to be created; and
WHEREAS, preferential tax treatment is given to monies invested in the oil and mining sectors within Saskatchewan; and
WHEREAS, there is a large pool of investors who will invest in the building of feedlots if the investment receives some form of preferential tax treatment;
THEREFORE BE IT RESOLVED, that the SARM lobby the Provincial and Federal Governments to legislate preferential tax treatment of monies invested in the cattle feeding industry in Saskatchewan.
Response from Kirk McGregor, Acting Deputy Minister of Finance:
Saskatchewan has followed a strategy of offering targeted tax incentives to key sectors of the provincial economy in order to improve the competitiveness of these sectors while ensuring the sustainability of public funding in support of priority public services. Targeted tax incentives in support of agriculture activity currently include fuel and 80 per cent of bulk gasoline purchased for use in primary production activities. These exemptions provided primary producers with more than $280 million in tax exemptions in 2006.
While the targeted tax incentive strategy has proven to be successful for the targeted sectors, a consequence of the strategy has been that Saskatchewan's statutory general business tax rates on capital and income have become competitive with the tax rate of neighboring jurisdictions. This growing disparity has impaired Saskatchewan's ability to attract new investments and employment.
To address this situation in 2006-07 Saskatchewan Budget introduced a major multi-year reform of the provincial business tax system, including the phased elimination of the general corporate capital tax and a significant reduction in the general corporate income tax rate. This reform will help to create an improved business climate in the province, promote sustainable economic development and expand employment opportunities for all Saskatchewan residents.