Awani Review

Complete News World

Eliminating the VAT on building materials would be very expensive, according to Legault

Eliminating the VAT on building materials would be very expensive, according to Legault

While real estate developers are urging Quebec to follow Ottawa’s lead, Premier François Legault believes eliminating the Quebec sales tax (QST) on building materials would be too costly a measure compared to its efficiency.

This is something that would cost a lot of money.The Prime Minister noted at a press conference on Wednesday morning in New York.

When we look at the effectiveness of the measure, in relation to its cost, there may be other measures that are more effective.

Therefore, he does not close the door twice on the idea of ​​abolition QST To construct rental buildings at Ottawa’s request. However, Finance Minister Eric Girard has tentatively estimated that the cost of such a measure in Quebec would be $1.5 billion.

Therefore, the Legault government believes it has cheaper and more effective solutions to stimulate the construction of rental units.

We are looking at several scenarios to help tenants. We do not believe that this will be the most effective measure in the short termMr. Legault added.

The Prime Minister indicated that Housing Minister France-Hélène Duranceau, as well as Eric Girard, will consider other options. He noted that the economic update will be revealed in November.

Federal proposal

Prime Minister Justin Trudeau announced that Ottawa will eliminate the federal sales tax (GST) on new rental building construction, fulfilling a 2015 election promise that his government abandoned.

Ottawa encouraged provinces to follow suit. Ontario, British Columbia and Newfoundland and Labrador have already followed suit.

The aim of the measure is to stimulate the construction of new housing, and Federal Minister of Housing, Infrastructure and Communities, Sean Fraser, welcomes the efforts of these three provinces.

It is important to use the federal tool to increase the number of homes across the country, but also to encourage other levels [de gouvernements] To change their systems in order to improve the situation.

However, Ottawa made the decision to cancel Goods and services tax Without consulting Quebec. The exact details of the announcement remain unknown and no federal tax bulletin was filed with the announcement. Details are expected to be announced only on Thursday.

See also  Health: The bill that limits the use of authorized recruitment agencies in Quebec

With information from The Canadian Press