ONTARIO-The Canadian Taxpayers Federation is giving two thumbs up for Conservative Party Leader Pierre Poilievre’s promise to take the GST off new homes under $1 million if he forms government.
“This tax cut would save families tens of thousands of dollars when they buy a new home,” said Franco Terrazzano, CTF Federal Director. “Too often the federal government ramps up spending on housing programs that don’t work and waste taxpayers’ money. The best way for the federal government to make homes more affordable is to cut taxes for building homes.”
By removing the federal sales tax, a family will save up to $50,000 on the purchase of a new home. The Conservative Party estimates the “tax cut that will spark 30,000 extra homes built every year.”
“Government fees and charges typically can contribute 30 per cent of an overall construction build,” according to the Homebuilders Association Vancouver.
The Canadian Centre for Economic Analysis estimates that taxes make up 31 per cent of the purchase price of a new home in Ontario, with sales taxes accounting for the largest share of the tax burden.
“Cutting taxes is the best way for the federal government to make homes more affordable,” Terrazzano said. “Taxpayers are looking for plans from all parties and governments to cut taxes and make homes more affordable for Canadians.”
