Poilievre Pledges to Axe Sales Tax on New Homes Under $1 Million, Sparking Industry Support

Poilievre Pledges to Axe Sales Tax on New Homes Under $1 Million, Sparking Industry Support
Poilievre Pledges to Axe Sales Tax on New Homes Under $1 Million, Sparking Industry Support

Toronto — Conservative Party leader Pierre Poilievre announced a campaign promise to eliminate the Goods and Services Tax (GST) on new homes priced under $1 million, aiming to reduce costs for prospective homeowners by up to $50,000. The proposal, outlined in a series of social media posts, is part of Poilievre’s “axe the tax” initiative to address Canada’s affordability and housing crises.

Poilievre claims this tax reduction would incentivize builders to construct approximately 30,000 additional homes annually, bolstering job creation and economic growth within the construction sector. “Common sense Conservatives will axe the sales tax on new homes for Canadians. This tax cut will spark 30,000 extra homes built each year, generating powerful paycheques for workers & businesses,” he tweeted.

The announcement has garnered support from industry groups, including the Residential Construction Council of Ontario (RESCON), which expressed enthusiasm for the potential impact on the housing market. In a statement, RESCON highlighted that reducing taxes on new home builds could increase housing supply and lower barriers for first-time buyers. The organization’s president, Richard Lyall, called the plan a “welcome relief” and noted that housing affordability remains a top priority for many Canadians.

By focusing on homes under the $1 million mark, Poilievre’s proposal targets urban markets like the Greater Toronto Area, where prices for new builds often exceed national averages. However, critics question whether the GST reduction will sufficiently offset high construction costs and regulatory challenges that continue to drive prices upward.

If implemented, Poilievre’s plan would mark a significant shift in federal housing policy, addressing affordability concerns that have surged in recent years amid skyrocketing real estate prices. The Conservative Party’s approach contrasts with current policies, which critics argue have not adequately resolved the crisis.

The proposed tax cut remains contingent on the Conservatives winning the next federal election, and Poilievre has encouraged supporters to rally behind the initiative. “Let’s bring it home,” he posted, urging Canadians to support his vision for tax relief and housing reform.

This policy commitment is among several recent Conservative efforts to address economic strain, particularly within the housing market. As Canadians continue to grapple with housing affordability, Poilievre’s proposed reforms are likely to be a focal point in the upcoming election debates.

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