PM Trudeau recently said that GST will be removed from the costs of construction involving new rental apartments in Ottawa
Home builders’ associations and other groups are calling on the Saskatchewan government to follow Ottawa’s recent decision to remove taxes on new rental building projects.
Late last week, Prime Minister Justin Trudeau announced that the goods and services tax (GST) will be removed from the costs of construction involving new rental apartments in Ottawa.
The measure, which the prime minister described as just the first in a set of upcoming initiatives by the federal government, is intended to accelerate the development of fresh housing supply.
Eligible buildings will need to have at least four private apartment units or at least 10 private rooms or suites, with 90% of these units exclusively set aside for long-term rentals.
“We know that it can work,” said Chris Guérette, CEO of the Saskatchewan Realtors Association.
“The biggest question I have is what other policies can we put in place to ensure that Saskatchewan is actually competitive with other provinces,” Guérette told Radio-Canada.
Canadian Home Builders' Association warns of slower home starts due to rising construction costs from recent rate hikes. Chief Executive Kevin Lee calls for government action to offset the impact.https://t.co/UhRksMGfRd#mortgagenews #mortgageindustry #ratehike #interestrates
— Canadian Mortgage Professional Magazine (@CMPmagazine) July 24, 2023
However, the Saskatchewan government said that it is not contemplating a similar measure at this time.
“Our government believes that the broad application of PST ensures that a fairly applied, reliable, and sustainable source of revenue is available to finance vital public services,” Finance Minister Donna Harpauer told CBC News via email.
“Saskatchewan is the most affordable province in Canada when considering taxes, utilities, and housing costs… The Saskatchewan government remains committed to working closely with the construction sector to understand ongoing challenges and work on potential solutions where possible, while balancing various fiscal considerations.”
