Sudbury MP Viviane Lapointe supports the removal of the Goods and Services Tax (GST) for new purpose-built rentals, calling it “good news” for Sudbury.
“I’ve talked to local developers, builders’ associations, and city officials. They have all told me that removing this cost would encourage builders to build more rental housing at a more affordable price,” Lapointe said in a news release.
Mayor Paul Lefebvre said the federal government’s move to limit GST on new rental builds will help address housing shortages.
“Encouraging thoughtful, targeted and sustainable residential development that meets the needs of our residents is a key priority for our city,” Lefebver is quoted saying in the release. “I want to thank our federal partners for taking this step to incentivize new rental developments, in turn expanding housing options and addressing affordability as we work toward filling the housing gaps in our community.”
In the same release, Louie Zagordo, president of the Ontario Home Builders’ Association, said developers are pleased with the move by the federal government, saying this will help encourage building and combat the housing crisis.
“The Ontario Home Builders’ Association is extremely pleased about the federal government’s announcement to remove GST for new apartment construction,” Zagordo said. “This is another step towards our goal of building more, affordable homes across the country.”
Lapointe said the removal of GST will apply to new purpose-built rentals, meaning apartment buildings, student housing and senior residences built specifically for long-term rental accommodation.
Additional measures were also announced to as part of the same package that include requiring municipalities to end exclusionary zoning and encouraging building apartments near public transit.
Lapointe added that provinces, including Ontario, are following the federal government’s lead and will waive the provincial sales tax on new apartments.