News & Insights

Tax Alert | Saskatchewan Budget 2022

Tax Development Mar 24, 2022

On March 23, 2022, Deputy Premier and Finance Minister Donna Harpauer presented Saskatchewan’s 2022–2023 budget. Titled “Back on Track” and projecting a reduced deficit of approximately $463 million, the budget includes a record $6.8 billion in health care spending, as well as significant investments in infrastructure, education, social services, and economic development. 

This year’s budget also includes several significant tax changes, as summarized below.

Commodity Tax Measures

Provincial Sales Tax on Admissions and Entertainment

Charges for admissions and entertainment will be subject to provincial sales tax (PST), effective October 1, 2022. Under this expansion of the PST base, which will mirror the GST rules for supplies of entertainment, charges for many types of entertainment will become taxable, including admissions to:

  • sporting events;
  • concert and theatre performances;
  • movie theatres;
  • museums and historical sites;
  • zoos, fairs, and rodeos;
  • trade and craft shows; and
  • conferences and seminars.

In addition, fees and memberships for gyms, golf clubs, curling clubs, and fishing and hunting guide services will be subject to tax.

Exemptions will be available for events held by public sector bodies that do not feature paid participants (e.g., minor league sports events and amateur theatre productions), recreational programs for those 14 years of age and under organized by a school or non-profit organization (e.g., children’s hockey, dance, or music programs), and fundraising events where a portion of the admission charge can reasonably be considered a charitable donation.

This unexpected measure, which is projected to generate $21 million annually in additional PST revenue, has been criticized as counterintuitive because it will increase the cost of participation in recreational activities provided by suppliers that, in many cases, are still recovering from the impact of the COVID-19 pandemic.

PST Exemption for Audiobooks

Effective April 1, 2022, audiobooks will be exempt from PST, eliminating an inconsistency in the tax treatment between audiobooks and eBooks. Currently, an audiobook (i.e., an audio recording of the reading of a book) is subject to PST, while an electronic version of a printed book is exempt. 

Tobacco Tax Increase

The budget includes increases to Tobacco Tax rates, ostensibly to create more equity in the taxation of tobacco products among the western provinces. The province has also established different tax rates for cigarettes and loose tobacco, which previously had the same rate. 

Effective March 24, 2022, the following Tobacco Tax rates apply:

  • 29 cents (up from 27 cents) per cigarette stick;
  • 35 cents (up from 27 cents) per gram of loose tobacco; and
  • 21.8 cents (up from 20.5 cents) for heat-not-burn sticks.

Vapour Products Tax Exemption for Lloydminster

The vapour products tax (VPT) was implemented on September 1, 2021, at a rate of 20%, and applies to all vapour products sold in Saskatchewan. However, effective March 24, 2022, The Lloydminster Provincial Sales Tax Regulations will be amended to exempt purchases of vapour products from VPT within the City of Lloydminster.

Lloydminster has the unusual geographic distinction of straddling the provincial border between Saskatchewan and Alberta, the latter of which has no PST. Due to this unique situation, Saskatchewan provides specific exemptions to help facilitate certain types of retail sales on the Saskatchewan side of Lloydminster.

Future of the Federal Carbon Tax Fuel Charge

After losing its court challenge to the federal carbon tax last year, the province has announced that it intends to assume control of the federal carbon tax backstop fuel charge in Saskatchewan, including the collection and distribution of revenue from the tax. If successful, this move will give Saskatchewan autonomy over how carbon tax revenues are distributed or returned to residents in the province. Further information on this measure is expected to be announced in the fall of 2022.

Corporate Tax Measures

End of Temporary Reduction to Small Business Tax Rate

In a measure to help small businesses through the pandemic, the province temporarily reduced the small business corporate income tax rate to 0%, effective October 1, 2020. This rate will now be increased to 1% on July 1, 2022, and then to 2% the following year. The small business tax rate threshold will remain at $600,000.

Enhancements to Existing Tax Credits and Incentives

The province will enhance its Saskatchewan Value-added Agriculture Incentive (SVAI) by increasing the tax credit rate for higher levels of investment. Specifically, the program designed to encourage further capital investment in value-added agricultural facilities in Saskatchewan will provide a tax credit for a qualifying project at the following rates:

  • 15% on the portion up to $400 million;
  • 30% on the portion between $400 and $600 million; and
  • 40% on the portion more than $600 million.

The rate change is retroactive to the start of the program, and the program is capped at $250 million in tax credit value for a single project.

In addition, the province will further improve its Saskatchewan Technology Start-up Incentive (STSI) by increasing the cap for this tax credit program from $2.5 million to $3.5 million, effective April 1, 2022. The STSI provides a non-refundable 45% income tax credit for individuals, corporations, and venture capital organizations investing in eligible start-up businesses.

Property Tax Measure

In 2021, the provincial property tax percentage rate was adjusted, lowering commercial, industrial, elevator, railway, resource, and pipeline properties to 85% of taxable assessed value. This year’s budget includes the lower percentage of taxable assessment.

However, the province will implement a small increase to the education property tax (EPT) mill rates, which will also result in a decrease to the differential between the highest and lowest EPT mill rates. These EPT mill rate changes are expected to result in a revenue increase of about 1.8% and, when combined with growth in the assessment base, an estimated total revenue increase of 2.6%.

The 2022 EPT mill rates for various property classes will be:


2022 Mill Rates

2021 Mill Rates














More Information

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

Further details on Saskatchewan’s 2022 budget may be found on the province’s website at:

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