The Canadian Taxpayers Federation (CTF) is happy the federal government plans to stop charging sales tax on new rental housing construction..“This is a good first step,” said Franco Terrazzano, federal director of CTF. .“Cutting taxes is the fastest, easiest and most effective way for the feds to provide relief and the government should do way more of it.” .“The federal government will remove GST (Goods and Services Tax) from new rental apartment buildings,” reported the Globe and Mail on Thursday morning. .“The move makes good on a promise the Liberals made in the 2015 federal election but then dropped and didn’t include in their 2019 or 2021 platforms.” .“GST is the largest single tax or fee in a rental project budget,” according to a 2023 Urban Development Institute report. .“In the Vancouver rental analysis, GST could account for nearly 10%, or $250.60, of the average unit starting rent paid per month.”.In the 2023 budget, it's estimated that this year's revenue from the GST will be $51.4 billion..This year's GST revenue is $6 billion more than last year and nearly $2 billion higher than what Budget 2022 projected for this year..“It’s good to see the feds finally realize cutting taxes makes life more affordable,” said Terrazzano. .“Inflation is fattening federal coffers, so the government should be cutting taxes more to make life affordable.”
The Canadian Taxpayers Federation (CTF) is happy the federal government plans to stop charging sales tax on new rental housing construction..“This is a good first step,” said Franco Terrazzano, federal director of CTF. .“Cutting taxes is the fastest, easiest and most effective way for the feds to provide relief and the government should do way more of it.” .“The federal government will remove GST (Goods and Services Tax) from new rental apartment buildings,” reported the Globe and Mail on Thursday morning. .“The move makes good on a promise the Liberals made in the 2015 federal election but then dropped and didn’t include in their 2019 or 2021 platforms.” .“GST is the largest single tax or fee in a rental project budget,” according to a 2023 Urban Development Institute report. .“In the Vancouver rental analysis, GST could account for nearly 10%, or $250.60, of the average unit starting rent paid per month.”.In the 2023 budget, it's estimated that this year's revenue from the GST will be $51.4 billion..This year's GST revenue is $6 billion more than last year and nearly $2 billion higher than what Budget 2022 projected for this year..“It’s good to see the feds finally realize cutting taxes makes life more affordable,” said Terrazzano. .“Inflation is fattening federal coffers, so the government should be cutting taxes more to make life affordable.”
