SPDA
Saskatchewan Professional Drycleaners Association.
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Brief Outline
 On
July 18, 2001 the SPDA board met with representatives from the Saskatchewan
Finance, Revenue Division, RE the March 2000 Budget in which Laundry and
Drycleaning services are subject to Provincial Sales Tax (PST) at the rate
of 6%.
Our proposal
is to open discussion with the Finance Department regarding application
of the Provincial Sales Tax collected by our industry. We submit that some
of our supplies should be PST exempt as they are covered in the PST collected
when we complete a transaction. Manitoba exempts these supplies.
We propose that
supplies should be PST exempt when the "come in direct contact with the
clothes". This is not like a GST style format, where all costs are exempt:
rather, supplies coming in direct contact with clothes would be PST exempt
at source, when identified by the purchaser or the vendor.
Some of these
supplies would include:
* drycleaning solvents
* soaps and additives to wet and drycleaning
* stain removal chemicals
* mark-in supplies (tags, staples, pins, etc)
* packaging supplies (hangers, plastic covers, etc)
* materials used for repair and alterations
We would still
have to charge PST on the customers invoice, we would not pay PST to our
suppliers of items that would come in direct contact with the clothes.
We were well
received and will hold future consultations with Saskatchewan Finance on
this matter.
We keep you
informed on this page and in our fall newsletter "Pressing Issues".
Updated July
19, 2001 |
