{"id":21947,"date":"2023-09-14T23:29:55","date_gmt":"2023-09-15T06:29:55","guid":{"rendered":"https:\/\/essential.construction\/news\/ottawa-to-remove-gst-on-new-rental-housing-ask-grocers-to-stabilize-prices-pm\/"},"modified":"2023-09-14T23:29:56","modified_gmt":"2023-09-15T06:29:56","slug":"ottawa-to-remove-gst-on-new-rental-housing-ask-grocers-to-stabilize-prices-pm","status":"publish","type":"post","link":"https:\/\/essential.construction\/news\/ottawa-to-remove-gst-on-new-rental-housing-ask-grocers-to-stabilize-prices-pm\/","title":{"rendered":"Ottawa to remove GST on new rental housing, ask grocers to stabilize prices: PM"},"content":{"rendered":"

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LONDON, ON. \u2013 The federal government will remove GST on\u00a0construction\u00a0of new rental apartment buildings, Prime Minister Justin Trudeau announced Thursday \u2013 a move he first promised in the election that brought the Liberals to power.<\/p>\n

The measure, which would lower the cost of labour and materials for homebuilders, was one of several affordability measures Trudeau announced at the end of the Liberal caucus retreat in London, Ont.<\/p>\n

That includes trying to lower the rising costs of food in Canada. Trudeau said Industry Minister Francois-Philippe Champagne will ask grocery companies to come up with a plan by Thanksgiving to stabilize prices and that he is not ruling out forcing them to do so through tax measures.<\/p>\n

The federal government is also telling municipalities they must end exclusionary zoning and encourage building apartments near public transit in order to get federal funding through the housing accelerator fund.<\/p>\n

Housing Minister Sean Fraser sent a letter to Calgary\u2019s mayor Thursday urging city council to do just that.<\/p>\n

\u201cWe will never solve the housing crisis in Calgary if it is not legal to build the homes required to meet the moment,\u201d Fraser wrote in a letter to Jyoti Gondek that she released on X, formerly known as Twitter.<\/p>\n

On Wednesday, the City of London became the first to get its funding approved. While the $4-billion fund was announced in the 2022 budget, applications opened in July.<\/p>\n

\u201cThis is something that all Canadians are worried about,\u201d Trudeau said during a news conference Thursday.<\/p>\n

\u201cWe know that housing is a problem that takes decades to address.\u201d<\/p>\n

The Liberals have seen slumping poll numbers that suggest Canadians believe the Conservatives would do a better job dealing with affordability and housing concerns.<\/p>\n

News of the plan to remove the GST came out hours before Trudeau made his announcement and just before Conservative Leader Pierre Poilievre was scheduled to share his own housing plan in Vancouver.<\/p>\n

The Conservative plan would remove the GST on the\u00a0construction\u00a0of rental housing charging below-market prices to tenants.<\/p>\n

Poilievre argued his proposal holds more water than Trudeau revisiting a 2015 promise.<\/p>\n

\u201cHe\u2019s flip-flopped again and he expects you to believe it,\u201d he told reporters in Vancouver, pledging to introduce a bill when Parliament resumes on Monday that would also include five other measures.<\/p>\n

The NDP noted that they called for the GST to be dropped on new, affordable rental buildings six months ago, and said an entire\u00a0construction\u00a0season has passed since then. They also questioned whether the measures will be targeted at affordable homes or include \u201cluxury condos.\u201d<\/p>\n

Trudeau said he will be encouraging provinces to remove sales taxes on the cost of building new rental homes too.<\/p>\n

Earlier Thursday, Ontario\u2019s Progressive Conservative cabinet released a statement in support of the proposal. It said the province plans to remove its share of the HST on \u201cpurpose-built rental housing\u201d as soon as possible.<\/p>\n

\u201cMinister Fraser\u2019s quick action on this file will make it cheaper and easier to build more of the rental housing we desperately need,\u201d Ontario\u2019s Finance Minister Peter Bethlenfalvy and Housing Minister Paul Calandra wrote in a news release.<\/p>\n

In a press release the federal government also said it will take steps to \u201cenhance competition across the Canadian economy,\u201d giving the Competition Bureau the power to take action on corporations that work together to stifle consumer choice \u2013 specifically citing large grocery stores that have prevented competitors from setting up shop nearby.<\/p>\n

\u00a92023 THE CANADIAN PRESS<\/strong><\/p>\n<\/p><\/div>\n