NEWS RELEASE
WEST END HOME BUILDERS' ASSOCIATION
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Today’s announcement by the Conservative Party of Canada to remove GST on new homes with a purchase price under $1 million will make a big difference if enacted, especially for first-time buyers.
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.
“The GST thresholds haven’t changed since the introduction of the GST in 1991. Since then, house prices have more than doubled,” said CHBA CEO Kevin Lee. “Removing the GST on new homes will help improve affordability and enable more supply.”
“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. 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." - Mike Collins-Williams, CEO, West End Home Builders' Association
To pay for this policy, the Conservative Party of Canada proposes removing some current federal infrastructure spending which is conditional on municipalities improving their policies and processes. Given the importance of housing-supportive infrastructure funding and the need to eliminate barriers preventing supply at the municipal level, it will be important that the Conservative Party of Canada continues to roll out its platform with plans to address those housing affordability and supply issues too, which it has alluded to in previous commentary on its intentions.
“Addressing the GST is an important part of what needs to be a comprehensive plan supporting better housing affordability and more supply. It is also crucial that all federal parties have robust policies surrounding the funding of housing infrastructure and creating change at the municipal level to address current affordability challenges,” said Lee.
CHBA will continue to provide its recommendations to all federal parties dedicated to the goal of removing barriers to homeownership.
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