Conservative Leader Pierre Poilievre is proposing to scrap the federal sales tax on new build housing, claiming that this will help lower mortgage costs and speed up homebuilding.
Poilievre said in a news conference in Ottawa on Monday that as prime minister, he would axe the goods and services tax or harmonized sales tax on new houses that are sold for less than $1 million.
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Poilievre claimed that this tax cut could save Canadians $40,000 in total or $2,200 per year in mortgage payments on a $800,000 house and help build 30,000 new homes each year.
In Canada, homebuyers only have to pay the GST/HST when they purchase a new house directly from the developer.
According to the Canada Revenue Agency, sales of used owner-occupied homes are usually exempt from 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 homes sold by builders are taxable,” the CRA states on website.
More to come….
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