Fertilizer Canada is concerned about the lack of consultation from the Saskatchewan government in altering the current potash taxation regime.
These changes will impact the business operations of Fertilizer Canada’s members and create uncertainty.
"This is not the way to treat the potash industry, which continues to contribute so much to the Saskatchewan economy," said Garth Whyte, president and CEO of Fertilizer Canada.
Potash companies have generally been willing to engage with the Saskatchewan government through a consultative process to review the resource tax structure.
"Massive job creating investments have been made over the past decade in Saskatchewan," said Whyte. "While it is unclear exactly how much additional taxes our members will now be subject to, it does create uncertainty for any future investments."
These changes will result in Saskatchewan potash production being subject to the highest royalty and tax rates in the world. "Fertilizer markets are driven by global supply and demand factors. Increased tax burdens create another hurdle for Canadian companies to remain globally competitive," said Whyte.
Read the article online at: https://www.worldfertilizer.com/potash/22032019/fertilizer-industry-concerned-over-lack-of-consultation-on-saskatchewan-governments-potash-tax-hit/