Mar 29, 2019Potash production firms to pay $117M more in taxes
Potash production firms expect a $177 million increase in the taxes they will pay to the Saskatchewan provincial government.
Potash is a common fertilizer used in specialty crop agriculture to enrich the soil with potassium. It is mined in Saskatchewan. Multiple media outlets reported this week the Canadian province’s latest budget plan eliminates tax credits for potash mining.
A trade group, Fertilizer Canada – which represents manufacturers and wholesale and retail distributors of nitrogen, phosphate, potash and sulphur fertilizers – said in a news release the changes were a surprise.
The changes “will result in Saskatchewan potash production being subject to the highest royalty and tax rates in the world” and “will have significant impacts on the business operations of our members and creates uncertainty,” according to the news release.
“Fertilizer markets are driven by global supply and demand factors. Increased tax burdens create another hurdle for Canadian companies to remain globally competitive,” said Garth Whyte, President and CEO of Fertilizer Canada.