News and Insights

Tax Alert | Saskatchewan Budget 2023

Tax Development Mar 23, 2023

On March 22, 2023, Deputy Premier and Finance Minister Donna Harpauer presented Saskatchewan’s 2023–2024 budget. Titled “Growth that Works for Everyone” and projecting a surplus of approximately $1 billion, this year’s budget touts a growing economy bolstered by increased employment and investment as well as rebounds in commodity prices and crop production. 

Significant investments are planned to: strengthen healthcare, childcare, and education; improve social services and public safety; support agricultural research and innovation; and expand the province’s infrastructure.

This year’s budget includes no new taxes or tax increases. However, a few significant tax changes were announced, as summarized below.

Commodity Tax Measures

PST Exemption for Repair and Installation of Medical Equipment

In line with the record healthcare funding included in this year’s budget, the province has proposed an exemption, effective April 1, 2023, for Provincial Sales Tax (PST) on labour charges and material costs incurred to install or repair exempt medical equipment. This exemption also applies to any labour and materials consumed in a real property installation. Note that where the medical equipment is taxable, any repairs, parts, or installation labour will be subject to PST.

Expanded PST Exemptions for Farm Equipment

This year’s budget proposes to provide PST exemptions for storage buildings and containers used to hold commercially grown fruits and vegetables, subject to certain conditions, as well as boats with attached harvesting equipment used primarily in wild rice farming. These exemptions are retroactive to April 1, 2019.

Expanded PST Exemptions for Drilling Activities

The province has identified a lack of consistency regarding the application of PST to various types of drilling rigs. To address this issue, the budget proposes a PST exemption, retroactive to April 1, 2017, for commercially used geothermal drilling rigs used to explore for or generate electricity or steam that will be resold for commercial purposes. This change will align the PST treatment of geothermal drilling rigs with the application of tax to equipment used in other drilling activities. 

In addition, effective April 1, 2023, hydraulic pipe tables used under certain conditions will be exempt from PST when purchased by well servicing and drilling contractors.

Corporate Tax Measures

Enhancements and Extensions to Existing Tax Credits

In this year’s budget, the province announced the following enhancements and extensions to existing income tax credits:

  • A retroactive extension to the Manufacturing and Processing Exporter Tax Incentive (a non-refundable corporate income tax credit) by one year to December 31, 2023; and
  • Tripling of the Saskatchewan Mineral Exploration Tax Credit (a non-refundable personal income tax credit) rate to 30%, effective for the 2023 taxation year.

More Information

For information on new and extended government funding initiatives included in this year’s provincial budget, please navigate to:

Further details on Saskatchewan’s 2023 budget may be found on the province’s website at:

To read key updates from Canada’s 2023 provincial budgets, please navigate to Key Changes | 2023 Canadian Federal and Provincial Budgets.

If you have any questions about how these proposed changes might impact your organization, please do not hesitate to contact the Ryan TaxDirect® line at 1.800.667.1600 or