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Sulzer Pumps (Canada) Inc
the recommendations included in this report have been tackled, there is more work to be done. The SCC will continue to make these recommendations to both levels of government.
Another common theme surrounded taxes and fees. Participants from the potash mining sector voiced concern over the structure of the province’s resource royalty rates and how the current structure harms competitiveness. In the case of potash mining, the current taxation regime is extremely complex, containing a production-based royalty, along with a two-layer production tax featuring a base payment rate and twotiered profit tax. In addition, a resource surcharge on three per cent of sales value is also levied. Such an approach imposes relatively high-cost burdens for mining companies in Saskatchewan, especially when compared to lower cost competitors in places like the US, China, Germany, and Eastern Europe. In our Beyond 2020 Blueprint, we recommended that the provincial government convene a panel of independent experts to review the effectiveness of the current potash royalty rate regime. The overarching principles of such a review should be ensuring competitiveness, fairness, simplicity, efficiency, and minimizing distortionary economic behaviours.
Lastly, the sector consultation meetings uncovered concerns about the competitive disadvantage due to not having access to carbon tax proceeds compared to provinces with self-administered systems. When the federal government imposed carbon pricing, it committed that no funds collected would be retained by the federal government. The current system returns approximately 90 per cent of direct proceeds from the carbon tax to residents in applicable jurisdictions, however, the other 10 per cent of proceeds have not been returned since the pause of the Climate Action Incentive Fund (CAIF) program in 2020. Among several other recommendations for the federal government, the SCC is asking the Government of Canada to return all carbon tax proceeds beyond those already being returned to households to applicable jurisdiction through a promptly available, broadly accessible program. This could look like a multi -stream program that is accessible to an array of SMEs, including an energy-intense trade exposed (EITE) focused program.
As the voice of Saskatchewan business, I look forward to collaborating further with your industry to build the strongest business ecosystem in Canada. Industries like potash mining are what helps position Saskatchewan to provide the food, fuel, and fertilizer the world needs. Continued growth will transform Saskatchewan’s business landscape and create opportunities to enhance competitiveness, boost investments, and increase trade. l
Pumps are at the heart of fertilizer production, and correct equipment selection that takes into consideration hydraulic design, materials, application knowledge, duty point and maintenance regime are critical to achieving reliable long-term pumping operation and maximum plant production. As an expert in solutions for corrosive and abrasive liquids, or those with high gas content, Sulzer offers a complete range of pumps, agitators, mixers and compressors for the fertilizer industry. Our innovative products are suitable for the production of potash, phosphate and NPK compound fertilizers as well as acids and industrial chemicals.
Sulzer’s global presence provides local support and expertise through a network of manufacturing facilities and service centers. Our solutions combine energy efficiency, low lifecycle costs, reduced environmental footprints and excellent reliability.
Contact us today to learn more.
Sulzer Pumps (Canada) Inc. Phone (514) 836-3796, salah.attie@sulzer.com
www.sulzer.com
