Cutting Sales Tax on Kids' Clothes and Groceries

Summary#

This bill changes Saskatchewan’s Provincial Sales Tax (PST) rules. It would make children’s clothing and most food bought in grocery stores exempt from PST. The goal appears to be lowering everyday costs for families and simplifying which grocery items are taxed.

Key changes:

• Exempts “clothing for children under the age of 16” from PST.
• Exempts “food purchased in grocery stores,” specifically including ready-to-eat items like rotisserie chickens, soups, pre‑packaged salads, sandwiches and wraps; snack items like muffins, granola/protein bars, mixed/salted nuts; fruit juices and yogurt drinks; and party platters.
• Lets the provincial cabinet add more foods by rule (regulation).
• Applies only to food bought in grocery stores; the bill does not extend this exemption to food bought elsewhere.
• Starts on the day it receives Royal Assent (becomes law).

What it means for you#

• Parents and caregivers:

  • You would no longer pay the 6% Saskatchewan PST on clothing for children under 16.
  • Stores may need a way to tell which items count as children’s clothing; the bill does not explain how this will be decided (for example, by size or age).

• Grocery shoppers:

  • You would not pay PST on food bought in grocery stores, including many ready‑to‑eat and snack items listed in the bill.
  • This likely removes PST from items such as hot rotisserie chickens, pre‑made salads, sandwiches, wraps, muffins, granola/protein bars, mixed nuts, juices, yogurt drinks, and party platters when bought in grocery stores.
  • Food bought outside a grocery store is not covered by this exemption.

• Grocery stores and supermarkets:

  • You would need to update checkout systems, product codes, and signs to stop charging PST on the affected foods.
  • You may need to apply a clear definition of “grocery store” within your operations; the bill does not define this term.

• Clothing retailers:

  • You would stop charging PST on eligible children’s clothing.
  • You would need clear methods to identify qualifying items (for example, by size ranges or product categories). The bill does not explain how eligibility will be verified.

• Provincial government:

  • PST revenue would likely go down.
  • Policy bulletins, audits, and systems would need updates. Cabinet could add more exempt foods by regulation.

Expenses#

No publicly available information.

• The change would likely reduce provincial PST revenue because more items become tax‑exempt.
• Government and retailers would likely face one‑time costs to update systems, guidance, and training.
• Ongoing compliance and audit costs may change because lines between exempt and taxable items (and what counts as a “grocery store”) may need clarification.

Proponents' View#

• The bill appears intended to lower the cost of living by removing PST from common family purchases like children’s clothing and grocery store foods.
• It could make food pricing simpler at grocery checkouts by treating more ready‑to‑eat items like other groceries.
• Families with children could see direct savings on clothing.
• Focusing the exemption on grocery stores could be seen as targeting household food purchases rather than dining out.

Opponents' View#

• One concern is lower PST revenue, which could reduce funds available for public services or require increases elsewhere.
• The bill does not define “grocery store,” which may create confusion for businesses with mixed operations (for example, in‑store cafés, delis, or convenience formats).
• The phrase “clothing for children under the age of 16” is not defined; it is unclear how retailers must verify eligibility (by size, style, or purchaser’s statement).
• Exempting food only in grocery stores may create uneven treatment where the same item is tax‑free in a supermarket but taxable in other venues.
• Allowing cabinet to add “any other foods” by regulation adds flexibility but also uncertainty for businesses and consumers about future changes.