Poilievre promises to cut municipal housing taxes in bid to boost home building
Conservative Leader Pierre Poilievre is focusing his campaign efforts in the Greater Toronto Area (GTA) on Thursday, with a promise to implement policies that will reduce taxes and make homes more affordable for Canadians.
During a speech in Milton, Ontario, Poilievre revealed another aspect of his party’s plan to address the housing crisis by committing to reduce development taxes on new home construction. For every dollar cut in development taxes, a Conservative government would match that amount up to a maximum of $25,000 per home, resulting in potential savings of up to $50,000 per home. This initiative aims to incentivize municipalities to lower development taxes on new homes, with the promise of a federal bonus for every dollar saved.
“We will build more, tax less, and remove government obstacles to save you thousands of dollars,” Poilievre stated in a promotional video highlighting the policy. The estimated cost of this proposal is $1.56 billion per year.
In addition to the development tax reduction, the Conservatives have also announced plans to accelerate the permit process and increase land availability for housing construction. Municipalities that fail to achieve a 15% increase in home building annually would risk losing federal infrastructure funding.
Another key element of the Conservative housing plan, unveiled on March 25, involves eliminating the Goods and Services Tax (GST) on new homes valued at up to $1.3 million. This tax cut could potentially save homebuyers up to $65,000 on their purchase. The party estimates the cost of this measure to be between $3.96 billion and $4.97 billion, with a portion of the funding coming from the economic benefits of constructing an additional 36,000 homes each year.
On the other hand, Liberal Leader Carney presented his housing plan on March 31, which aims to double the annual number of homes built in Canada to nearly 500,000. Carney’s proposal includes the creation of Build Canada Homes (BCH), a financing entity that will provide support for affordable housing projects through debt and equity financing for modular and prefabricated home builders.
During a campaign event in Brampton, Ontario, Carney defended his housing strategy, emphasizing its comprehensive and ambitious nature. He outlined BCH’s role in providing financing and grants to facilitate affordable home construction and address housing shortages across the country. The Liberal plan includes a mix of grants and loans totaling $4 billion for long-term, fixed-rate financing for affordable homes, as well as $6 billion in grants for the rapid construction of deeply affordable housing, supportive housing, Indigenous housing, and shelters. Additionally, $2 billion of the deeply affordable housing funds will be allocated to support the construction of housing for students and seniors in collaboration with provincial and territorial governments.
Both parties have put forth detailed housing plans with the goal of making homeownership more attainable for Canadians. As the election approaches, voters will have to weigh the merits of each proposal in deciding which party’s housing platform aligns best with their priorities and needs.
