The potash industry is not happy about the provincial government’s decision to end production tax deductions as part of the 2019-20 budget.

The Finance Ministry announced the ending of the credits from a six per cent rate to a 9.2 per cent rate, where it was in the mid 2000s. It is expected to raise an additional $117 million for the province.

A potash industry advocate said sudden tax changes could contribute to uncertainty in the industry when it comes to investors looking to Saskatchewan.

“When potash companies make multi-billion dollar, generational investments, as they have been doing in the past decade, it is critical that they have confidence in a predictable financial framework to make decisions in,” said Mike Durham, Chair of the Saskatchewan Potash Producers Association, in a media release Thursday.

The changes come into effect April 1, 2019, and there will be no transition time as company budgets are already set. The release said the money will come from current investments planned for Saskatchewan projects, including jobs and goods and service purchases.  

Finance Minister Donna Harpauer defended the changes and said the rate was still half of what it was a few decades ago.

The Potash Producers Association said the implementation of the federal carbon tax, which also kicks in April 1, will further erode the competitive position of potash producers in the world market.