REGINA, SASKATCHEWAN--(Marketwired - March 19, 2014) - The provincial budget recognizes the contribution credit unions have made to Saskatchewan by maintaining the current tax structure.
"Saskatchewan credit unions are truly appreciative of government's decision to maintain the current tax regime," said Keith Nixon, CEO of SaskCentral. "It is clear the Saskatchewan government recognizes the contributions credit unions have made to the communities of this province."
The current tax structure, which allows a two per cent small business tax rate on income, recognizes that credit unions are the small businesses of financial institutions.
The approximately $7 million annually credit unions save through this deduction is reinvested in capital, used to finance small and medium businesses, returned to members through dividends and contributed to organizations and communities. Saskatchewan also exempts credit unions from the provincial capital tax, which results in a savings of approximately $5 million annually.
"Credit unions play an important role in the success of this province," said Nixon. "We are grateful that we can continue to do so under this tax regime."
The announcement followed a significant grass roots advocacy campaign by credit union members.
"Our members showed their support for credit unions by sending postcards and letters to government and speaking with their MLAs," said Nixon. "We believe government's decision was the best one for credit union members and the province."
About SaskCentral - SaskCentral is owned by Saskatchewan credit unions to serve and represent their collective interests. There are 53 credit unions in Saskatchewan serving over 502,000 members. Saskatchewan credit unions build lives and fulfill dreams by helping members achieve financial well-being and investing in communities. As independent financial institutions owned and controlled by their members, credit unions are shaped by community needs. In 2013, Saskatchewan credit unions returned close to $16 million to their members in the form of patronage equity contribution and dividends. Credit unions are a major contributor to Saskatchewan's economy, employing almost 3,500 people and contributing millions to communities across the province.