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P.E.I. Liberal interim chief Hal Perry says the P.E.I. authorities ought to observe Justin Trudeau’s lead and take away provincial taxes on purpose-built rental housing tasks.
In an interview on September 15, Perry mentioned the transfer would assist decrease the prices for builders to construct extra rental housing. As of 2022, P.E.I.’s rental emptiness charge was lower than 1 per cent.
“The elimination of the provincial portion of the HST will symbolize an impactful and a tangible technique to handle this pressing difficulty of housing on Prince Edward Island,” Perry mentioned.
Perry’s name follows a September 14 announcement by Prime Minister Justin Trudeau that the federal authorities will take away GST from development of latest condo buildings.
The measure was first promised by the Trudeau Liberals of their 2015 election platform however was not applied within the 8 years the Liberals have ruled since.
Trudeau is dealing with dismal polling numbers due partially to the excessive price of residing. Federal Conservative Chief Pierre Poilievre, who’s presently main in opinion polling, has repeatedly used the rising price of housing costs to criticize the efficiency of the Trudeau Liberals.
In P.E.I., Perry mentioned the King authorities ought to rapid observe Trudeau’s lead.
“The longer that we delay this, the extra households are going to both endure the results of (the) housing scarcity disaster right here in Prince Edward Island,” Perry mentioned.
Perry estimated eradicating the HST may save a developer $300,000 on housing tasks which might be value $2 million.
Up to now in 2023, the variety of begins for rental development has been decrease than in earlier yr. The province estimates it must construct 2,000 new housing models a yr to maintain up with inhabitants progress.
P.E.I. Housing Minister Rob Lantz appeared sympathetic to the thought.
In an electronic mail assertion, Lantz mentioned he has urged Federal Housing Minister Sean Fraser to incentivize extra housing development by lowering constructing prices.
He additionally touted packages the P.E.I. authorities has already put in place, such because the housing problem fund.
“The initiatives launched by the Authorities of Canada yesterday to take away the GST on purpose-built rental models is a constructive step ahead; and one which as a province we assist,” Lantz mentioned.
“As a province, we hope to take this initiative a step additional by a complementary program to take away the provincial portion of HST on new rental builds, just like what a lot of my provincial colleagues are doing.”
Lantz’ assertion didn’t present a timeline as to when the province could take away provincial taxes on rental development tasks.