Report says Saskatchewan potash royalty system 'a mess,' urges simpler approach - InfoNews

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Report says Saskatchewan potash royalty system 'a mess,' urges simpler approach

February 08, 2013 - 8:14 AM

SASKATOON - A report by a tax policy expert says Saskatchewan's potash royalty structure is a mess and is hurting the province's economy.

The report by Jack Mintz of the University of Calgary says the current royalty and tax system is incoherent and absurd.

It includes a production-based levy, revenue-based levies, profit-based taxes and other taxes on capital investment.

The report says all those have nothing to do with ensuring long-term stability in government revenue or potash investment.

The report says it's possible to develop a far simpler and efficient royalty structure.

It says the right approach would help the government secure more consistent revenues from potash without hurting the incentive for producers to invest in Saskatchewan.

News from © The Canadian Press, 2013
The Canadian Press

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