GST will remain on new rentals

December 4, 2017

While the federal Liberal government was rolling out its $40 billion national housing strategy this month it was revealed the government had killed an election promise to the end the goods and service tax (GST) on new rental construction.
The disclosure is on the new federal website that lists the government’s progress on its stated mandate.
The Liberal Party election platform had estimated that waiving the GST on new rental housing would cost $125 million a year. At the time, it suggested eliminating the tax could help spur rental construction and potentially lower rents.
The Canadian Home Builders Association had recommended that the GST be exempt from all new rental construction, not just for affordable housing.
Rental advocates are also calling on the government to follow through on its pledge and eliminate the tax on new rentals.