Poilievre calls on premiers to remove sales taxes on new homes under $1M

Conservative Leader Pierre Poilievre is making a bold move by calling on Canada’s premiers to follow his lead in removing the federal sales tax on new homes under $1 million. In a letter addressed to all provincial and territorial leaders, Poilievre emphasized the importance of making home ownership a reality for young Canadians once again.

“This is a significant step in fixing what has been broken and making home ownership more than just a dream for young Canadians again,” Poilievre stated in the letter, which was shared with CBC News. He urged the premiers to take action and match his pledge to eliminate the federal sales tax on entry-level new homes.

Just last week, Poilievre had promised to remove the GST on the purchase of new homes under $1 million, arguing that the tax should not apply to essentials like food and housing. The Conservative Party estimates that this move could save Canadians up to $40,000 on an $800,000 house and lead to the construction of an additional 30,000 homes annually.

In his letter to the premiers, Poilievre challenged them to mirror his proposal by removing the provincial sales tax on new homes under $1 million. While provinces like Alberta and the territories do not have a provincial sales tax, others have rates ranging from six to ten percent.

The cost of housing has been a pressing issue across the country, with soaring prices driven by population growth, higher interest rates, and a shortage of housing supply. Poilievre acknowledged the unique circumstances of each province but emphasized the potential savings for residents if the provincial sales tax on new homes is eliminated.

However, implementing these tax cuts would come with significant costs. Poilievre plans to finance the removal of the GST by cutting federal programs he deems bureaucratic, including the Housing Accelerator Fund. Provinces would need to find alternative sources of savings to offset the loss of revenue.

Housing Minister Sean Fraser has fired back at Poilievre’s criticisms of the Housing Accelerator Fund, revealing that some Conservative caucus members have sought funding from the program for their communities. Despite Poilievre’s claims that the fund has not led to increased home construction, Fraser highlighted the support it has garnered from municipalities nationwide.

As the debate over housing affordability continues, Poilievre’s proposal to eliminate sales taxes on new homes aims to ease the financial burden on Canadians aspiring to own a home. The challenge now lies in finding a balance between stimulating housing construction and maintaining essential government programs.