PST on used cars runs just fine, Moe Gouger says
It has been a month since the Saskatchewan government added provincial sales tax to used vehicles.
Stubblejumper News checked with Taxation Minister Moe Gouger, who was gracious enough to take time from planning enhanced revenue streams to spend a few minutes with automotive journalist Ted Viscosity.
Q: Mister Minister, can you remind us why PST was added to used cars in last month’s provincial budget?
A: Quite simply, it was the right thing to do. This government is committed to balancing the books while increasing spending and lowering taxation and the fat cats in the legislative building can put that in their pipes and smoke it!
Q: Sir, aren’t you just paraphrasing Monty Burns in an old Simpsons episode?
A: No. And mark my words, we are going to drain that swamp!
Q: Very well, um, but you said you were committed to lowering taxes. Won’t the PST on used cars cost taxpayers $95 million a year?
A: Only if they buy cars. I fully intend to keep my Escalade.
Q: If taxing used cars is the right thing to do, why was eliminating the PST on used cars the government’s highest priority in 2007?
A: I don’t have to remind you that 2007 was a long time ago. That’s a lot of water under the bridge, and by water I mean gasoline and by bridge I mean pipeline. Where were we?
Q: There have been many complaints about the new system. One man bought a truck for $7,300 but when he went to buy insurance, they said it was worth $10,000 according to the Red Book.
A: We’ve used the Red Book as the ultimate authority in car valuation. It’s an excellent book, an engrossing book. I’m on Chapter 3 and I can’t put it down.
Q: But shouldn’t the value of something be determined by the market? The Red Book doesn’t even take into account a vehicle’s condition.
A: That’s why we’ve implemented an appeal system. Buyers can state their case in writing before we rule against them.
Q: Do you think it’s fair that the new tax is applied even if I bought a vehicle before the provincial budget?
A: Of course. People could just back-date the bill of sale.
Q: Are you saying that the average person is a liar and a fraud?
A: Of course not. Only if they vote NDP. And I remind you that vehicles valued at $5,000 or less are not taxed and never will be taxed by this government unless we change our minds.
Q: I was wondering about that. If my car is worth more than $5,000, why do I have to pay GST on the whole thing and not just the amount above $5,000?
A: We considered that but realized we could make more money this way.
Q: If you really need the money, why is insurance on farm plates so much lower?
A: I don’t believe it is. Q: Actually, a 2010 Ford F150 Regular Cab with a farm plate is $1,068.64 but the same vehicle with a private plate is $1,402.54.
A: Farmers are important. We couldn’t live without them.
Q: Or their votes?
A: I assure you that hasn’t nothing to do with it. Now, I have to get back to seeding.
Q: But ... Never mind.