Conservative Leader Pierre Poilievre says if his party forms government, it will scrap the federal sales tax on new homes sold for less than $1 million and push provinces to do the same.
Poilievre made the case for the cut in a six-minute video published online, arguing governments are partly to blame for high home prices because they’re charging too much in sales taxes.
“The number 1 cost for a home is government: government bureaucrats, government taxes, government gatekeepers,” Poilievre said in a news conference Monday morning.
The Conservatives estimate the new measure will reduce the cost of an $800,000 home by $40,000 and spur construction of another 30,000 homes per year.
Since becoming the Conservative leader in September 2022, Poilievre has gone after the Liberal government over the rapid increase in home prices and rents since Trudeau came into power in 2015.
That message appears to have resonated with Canadians who are fed up with the high cost of living.
The Conservatives have enjoyed a double-digit lead in polls for more than a year, putting the Liberals on the defensive.
Poilievre said Monday that he would pay for the tax cut by scrapping Liberal housing policy.
That includes the housing accelerator fund, which offers homebuilding money to cities if they adjust bylaws and regulations that are considered barriers to new construction.
Poilievre said a Tory government would also abolish the housing infrastructure fund, which sets aside $5 billion for agreements with provinces and territories in exchange for adopting certain housing policies.
The Conservatives expect income tax revenues to increase due to the boost in homebuilding spurred by the policy.
“And of course, we’re going to get billions of dollars in additional revenue from the fact that construction workers and businesses are making more money building more homes,” Poilievre said.
The Liberal government scrapped GST charges on new apartment builds last year to encourage more rental construction but the NDP and Conservatives said they would only keep that cut for affordable or below-market price rentals.
This report by The Canadian Press was first published Oct. 28, 2024.