The Saskatchewan personal income tax system must change to stimulate economic growth in the province, said the Weyburn Chamber of Commerce on Thursday.

Chamber president Les Winter endorsed the recent Personal Income Tax Review Committee Report, which calls for major changes to the tax system.

The report recommends the personal income tax system be a tax on income, with three tax brackets: 11 per cent, 13 per cent and 15 per cent. The report also suggests there be more tax credit supports for families and a five-per-cent sales tax applying to more items.

"The new system should be based on income rather than a tax on a tax," said Winter. "If the new system were based on income it would be more fair. It would put more dollars into the taxpayer's pockets."

Finance Minister Eric Cline's instructed the Saskatchewan Personal Income Tax Review Committee to find a new tax system which was fairer, simpler, provided more tax relief to families and would be more competitive with Canada's other provinces.

"I said in my last budget in March, 1999 I hoped to have a new tax system for the next budget," said Cline. "That remains my hope."

Winter also said a new tax system would lower personal income taxes and bring business to Saskatchewan.

"If you look at the job creation numbers in Alberta and Manitoba, Saskatchewan doesn't stack up." said Winter. "We need to be competitive with the other provinces. A lower income tax will mean more people will pay taxes and the more taxpayers there are, the more benefits Saskatchewan will see."

The finance minister said he and other government MLA's were continuing to consult with various groups in Saskatchewan and will decide in February, when the provincial budget is announced, whether the report will be adopted in full, in part or scrapped.

"This study should be implemented immediately," said Winter. "The plan is good for the economy and it is politically feasible to implement now.