Poilievre wants to eliminate GST on new homes sold for less than $1 million – National
Conservative leader Pierre Poilievre proposes eliminating the federal sales tax on newly constructed housing, saying it would help lower mortgage costs and speed up housing construction.
Poilievre told a news conference in Ottawa on Monday that as prime minister he would eliminate the goods and services tax or harmonized sales tax on new homes sold for less than $1 million.
Poilievre said the tax cut could save Canadians $40,000 in total, or $2,200 a year in mortgage payments on an $800,000 home, and help build 30,000 new homes each year.
“We will also reduce bureaucracy. We are going to eliminate programs that, according to the Liberals themselves, have not allowed us to build any houses,” he told reporters.
Poilievre said he would cut the Liberal government’s Housing Acceleration Fund and Canada Housing Infrastructure Fund to fund the sales tax cut.
Over several years, this plan would save the government a total of $8 billion, he added.
In Canada, home buyers only have to pay GST/HST when purchasing a new home directly from the developer.
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According to the Canada Revenue Agencysales of owner-occupied used homes are generally exempt from the GST/HST.
“In most cases, the GST/HST does not apply to the sale of an owner-occupied home since the owner is not a builder. Only houses sold by builders are taxable,” specifies the ARC on its website.
Poilievre said that without the tax on new housing construction, businesses would pass those savings on to consumers, “because if they don’t, then buyers will buy from someone else.”
The Greater Ottawa Home Builders’ Association welcomed the Conservative proposal, saying the change would mean new townhouses in the capital would be eligible for a full GST rebate.
The association estimates that government-imposed taxes and fees, including HST, represent about 20 per cent of the average cost of a new home in the capital.
“Increasing the GST rebate threshold will support affordability, increase housing supply and restore fairness for current and future generations of homebuyers,” said Jason Burggraaf, Executive Director of GOHBA, in a press release.
From December 15, first-time buyers as well as those purchasing a new construction will soon be able to take out insurance mortgages with a 30-year amortization, compared to a typical payback period of 25 years.
In an announcement last monthDeputy Prime Minister and Minister of Finance Chrystia Freeland said the price ceiling for underwriting insured mortgages would be increased to $1.5 million, up from the previous mark of $1 million.
Meanwhile, the federal government last week announced reduced immigration targets for the next three yearswhich Some experts say this will impact housing affordability. from next year.
The Liberal government plans to build nearly 3.9 million housing units by 2031 as part of an ambitious housing plan that has been unveiled earlier this year.
The Parliamentary Budget Officer estimates that Canada will need to build 3.1 million housing units by 2030 to close the housing deficit.
Immigration Minister Marc Miller said last week that reducing immigration targets could reduce Canada’s housing needs by as much as 670,000 units by the end of 2027.
– with files from Craig Lord and Uday Rana of Global News and The Canadian Press.
© 2024 Global News, a division of Corus Entertainment Inc.
