PST Changes Will Benefit Farmers and the Agriculture Industry

These changes should provide greater clarity to our farmers, as well as ensure that PST is applied fairly and consistently to farming and agriculture goods and services.

Big changes are coming to the Provincial Sales Tax (PST) regulations, which should greatly benefit our farmers and agriculture industries. These changes should provide greater clarity to our farmers, as well as ensure that PST is applied fairly and consistently to farming and agriculture goods and services.

"After speaking with agricultural organizations in our province, we heard concerns that PST was inconsistently applied to farming and agricultural activity," Deputy

Premier and Finance Minister Donna Harpauer said. "The changes to the PST regulations will be more equitable, consistent, and protect farmers against perceived 'PST creep' in farming activity."

As of April 1st, 2022, new PST exemptions were implemented, which were made possible through regulatory changes. These Exemptions include:

•    Prefabricated windbreaker panels for use in the protection and handling of livestock.

•    Insulators for electrified livestock fences.

•    Certain farm equipment attached to a registered vehicle.

•    On-farm dugout excavation and trenching (in specific circumstances related to farming).

It was also clarified that the following products are also exempt from PST and are retroactive to April 1st, 2016:

•    Water storage tanks used in spraying or irrigating crops.

•    Storage tanks for weed control chemicals, insecticides, fungicides, herbicides, and liquid fertilizer.

•    Adjuvants that improve their efficacy or application. 

•    Portable seed cleaners used on-farm by farmers in preparing their crop for storage or market (farmers in the business of seed cleaning must pay PST on their seed cleaning equipment).