Nova Scotia to remove its portion of HST from new rental building starts

The provincial government is removing its portion of the HST from new construction of rental units in the province as suggested by federal government as a way to combat the housing shortage.

While Ottawa is removing it for five to seven years, Premier Tim Houston said Nova Scotia is only committing to two years.

He said it could reduce the province’s tax revenue by something in the range of $80 million to $100 million per year, but called it “a significant investment in housing.”

He said he hopes the cost goes up, because that would indicate more housing starts.

More also needs to be done to help with the labour pool to also help build new housing, he said, and the province is working on that, as well as permit and zoning processes at the municipal level.

“This is the first step on a journey,” he said. “In the fullness of time, will this step prove to be the most effective? I don’t know that it will.”

The povince’s rebate will mirror that of the federal government, Houston said.

On Sept. 14, Prime Minister Justin Trudeau said that the federal government will remove the GST from construction of new rental accommodations of four or more units.

The PEI government has also said it is considering removing its portion of the HST.