The federal government is expected to announce the removal of the GST on the construction of new rental apartment buildings, Global News has learned.
A senior government source speaking on background to discuss matters not yet announced said the announcement will be made later Thursday. The Canadian Press also reported on the news.
Housing Minister Sean Fraser signalled Wednesday that the government is exploring avenues to lower costs for builders due to the current high interest rates from the Bank of Canada.
“We will be looking at measures that change the financial equation for builders to build in light of the higher interest environment that they’re operating in,” Fraser said Wednesday.
Through the Liberal caucus retreat in London, Ont., the government has said that it will be announcing measures aimed at easing the current housing crisis.
On Wednesday, it announced that London is the first city to receive money from the Housing Accelerator Fund. That city is receiving $74 million over the next three years to help build 2,000 units.
Conservative Leader Pierre Poilievre criticized the Housing Accelerator Fund, calling it Justin Trudeau’s “photo-op fund.” Poilievre said he would introduce a new bill in the House of Commons with his own proposals to address the housing crisis when the fall session returns.
“It will require cities permit 15% more homebuilding per year or lose federal grants. Those that build more than 15% in extra home building will get a building bonus,” he said in a press release.
“This will be based on a strict mathematical formula. If you exceed your building target by 1%, your funding goes up 1%. If you missed your target by 1%, your target goes down 1%. More homebuilding, more money, less homebuilding, less money.”
Poilievre said the plan would reduce taxes and red tape, prioritize housing near transit stations, and bring a NIMBYism (Not In My Backyard) penalty for municipalities that block development.
Poilievre’s proposed legislation is in line with his housing promises to voters, should the Conservatives form the next government.
More to come…
— with files from Global News’ Mackenzie Gray and Uday Rana
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