Sask. PST exemption for vehicle trade-ins to end April 1
Car dealerships are crying foul after the trade-in value of vehicles will no longer be exempt from Provincial Sales Tax (PST) in Saskatchewan after April 1.
“It’s really going to hurt your pocketbook if you trade-in a $60,000 vehicle and have to pay six per cent PST on that,” said Robert Mann, owner of Saskatoon Motor Products (SMP).
Previously, when a buyer traded in a $5,000 vehicle for a new $20,000 ride, PST would only be applied to the difference of $15,000.
With the new rules, buyers now pay the six per cent tax on the total $20,000.