Saskatchewan's 'Incoherent' Potash Fiscal Regime Needs Revamping

CALGARY, Feb. 8, 2013 /CNW/ - A report published today by The School of Public Policy concludes that Saskatchewan's potash fiscal regime is a mess and is hurting the province's economy. Authors Jack Mintz and Duanjie Chen analyze the current regime and find it to be a hodgepodge of tax and royalty rates.

"Under the current royalty and tax regime for potash producers, the tangled thicket of royalties, taxes and credits can differ between commencement dates for production, projects of different sizes, or even projects of similar size but with different profitability; it also has potash producers generally enjoying a much lighter tax burden on marginal investments than that borne by the oil and gas industry and most other non-resource industries," the authors write. "The result is distortions and inefficiencies, resulting in subpar investment activity, which can only stand in the way of Saskatchewan reaching its full economic potential."

Mintz and Chen argue that revamping the potash fiscal regime should be done with a focus on "simplicity" and "efficiency."

To achieve these two standards, they propose a "revenue-based royalty and a rent-based tax, each of which with a single rate and an identical tax base for all tax/royalty payers." This means that government would set two rates, one royalty and one tax applied to revenue above the normal cost of capital, which would be applied across the sector.

Implementing these reforms would create long-term stability in both government revenue and investment in the sector, Mintz and Chen argue.

The report can be found at

Video with caption: "Professor Jack Mintz shares the findings of his report on Saskatchewan's fiscal regime surrounding potash, which he calls 'incoherent' and 'absurd'". Video available at:

SOURCE: The School of Public Policy - University of Calgary

For further information:

Media Contact:

Morten Paulsen
Phone: 403.399.3377

Organization Profile

The School of Public Policy - University of Calgary

More on this organization

CNW Enriched News Releases

More on this organization

Custom Packages

Browse our custom packages or build your own to meet your unique communications needs.

Start today.

CNW Membership

Fill out a CNW membership form or contact us at 1 (877) 269-7890

Learn about CNW services

Request more information about CNW products and services or call us at 1 (877) 269-7890