Photo: Patrick Doyle The Canadian Press A Conservative government in Ottawa would eliminate the GST on new homes sold for less than $1 million and would push for provinces to eliminate their sales tax on new homes as well.
The Canadian Press in Ottawa
Published at 1:56 p.m. Updated at 5:50 p.m.
- Canada
A federal Conservative government led by Pierre Poilievre would eliminate the federal sales tax (GST) on new homes sold for less than $1 million.
That’s what the Conservative leader announced in a video released Monday morning, in which he accuses the Liberal government of having caused house prices to soar since he came to power in 2015.
“Less taxes, more housing,” he summarized at a press briefing in Ottawa. “We will restore and reinstate Canada’s promise that hard work means a big paycheque and pension that allows you to buy food and shelter in safe communities.”
Mr. Poilievre says that in Ontario and British Columbia, government charges account for more than 30 per cent of the cost of a new home, and he laments that the federal government is picking up the lion's share.
A Conservative government in Ottawa would therefore eliminate the GST on new homes sold for less than $1 million and would pressure the provinces to also abolish their sales tax on new homes.
Mr. Poilievre estimates the move would result in 30,000 additional homes being built each year and would reduce the cost of an $800,000 home by about $40,000.
Since becoming Conservative leader in September 2022, Poilievre has frequently attacked the Liberal government over the rapid rise in housing prices and rents since Trudeau took office in 2015. That message appears to have resonated with Canadians fed up with the high cost of living.
200% Deposit Bonus up to €3,000 180% First Deposit Bonus up to $20,000The Conservatives have enjoyed a double-digit lead in the polls for over a year, putting the Liberals on the defensive.
This new commitment comes on top of his promise to abolish the GST on the construction of new rental housing for those “whose rental price is below market value.”
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Poilievre plans to reuse funds from programs introduced by Justin Trudeau’s Liberals that he intends to eliminate. For example, he would end “bureaucratic programs” like the Housing Accelerator Fund. He claims that “by the Liberals’ own admission, [these programs] have not built a single home.”
Poilievre said a Conservative government would also eliminate the Canada Housing Infrastructure Fund, which sets aside $5 billion for agreements with provinces and territories in exchange for adopting certain housing policies.
The Conservatives expect tax revenues to increase because of the increased home construction spurred by their policies.
“And of course, we’re going to get billions of dollars in additional revenue because construction workers and businesses are making more money by building more homes,” Poilievre said.
Last year, the Liberal government passed legislation to eliminate the GST on the construction of new rental housing. The NDP and Conservatives have said they will only keep the cuts for affordable or below-market rentals.
Housing Minister Sean Fraser criticized the Conservatives’ plan to pay for the tax cut by ending existing housing programs that he says are working.
Fraser said recent municipal zoning changes have legalized denser housing construction under the housing acceleration fund and suggested that cutting the program would hurt low- and middle-income families.
“It's unacceptable to me to propose a program if the result is that middle-class and low-income families pay more, if the benefits of the program are then opened up to the investor class who may have five or six homes and who would suddenly get a tax break that ordinary Canadians pay,” he said Monday.
There were concerns that developers and landlords wouldn't necessarily pass the savings on to tenants, through lower rents.
Asked how he would ensure his measure announced Monday would benefit consumers, Poilievre said “the only way to ensure that home builders pass the savings on to Canadians is competition.”
“More housing forces companies to lower prices or they’re going to lose sales to other companies,” he said.
The Conservative leader argued that’s what happened in the United States.