Homebuilding industry supports federal conservative proposal

Homebuilding groups are supporting a proposal from the federal Conservatives to end the federal sales tax on new homes sold for less than $1 million if they are elected.

“The GST thresholds haven’t changed since the introduction of the GST in 1991,” says Kevin Lee, CEO of the Canadian Home Builders’ Association (CHBA). “Since then, house prices have more than doubled. Removing the GST on new homes will help improve affordability and enable more supply.”

Leadership to cut new housing taxation

“Removing the GST for new homes purchased for under $1 million may be the most significant housing policy commitment made in the past two decades,” adds Mike Collins-Williams, CEO of the West End Home Builders’ Association (WEHBA). “Removing the GST shows leadership to cut crippling levels of taxation on new housing, puts money directly back into the pockets of Canadians while combatting the housing crisis.”

WEHBA and CHBA have been advocating for years with all major parties for a change to GST thresholds and is encouraged that this policy addresses what has been a major contributor to affordability challenges when buying a home.

“We commend opposition leader Pierre Poilievre and his party for putting forward this plan to remove the GST and encourage the provinces to do the same, as it will save buyers tens of thousands of dollars on the purchase of a new home,” says Richard Lyall, president of the Residential Construction Council of Ontario.

Step in the right direction

“Builders have been urging the federal and provincial governments to remove the sales taxes to bring down the cost of new housing and spur construction of residential development.

“Taxes on new housing in the Greater Toronto Area, for example, are the highest in North America, and have combined with other factors to push the cost of new homes beyond affordability for many, especially first-time homebuyers. This move is a step in the right direction.”