AVIATION FUEL TAX REDUCED

The Province has slashed aviation fuel taxes to encourage major airlines to fill up their planes in Saskatchewan.

The tax on aviation fuel has been dropped from 3.5 to 1.5 cents per litre, and aviation fuel purchased in Saskatchewan for use in international flights is fully refundable.

"Saskatchewan is now tied with Alberta for the lowest aviation fuel tax in western and central Canada," Finance Minister Harry Van Mulligen said. "These reductions will give a needed boost to Saskatchewan's airlines and aviation fuel dealers."

The tax cut and refund for international flights are expected to save an estimated $800,000 annually for the provincial aviation industry.

The Fuel Tax Amendment Act 2005 received second reading in the Legislature today. Changes were effective midnight, March 23rd, 2005.

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For More Information, Contact:

Lorri Thacyk Finance Regina Phone: (306) 787-6605