Critics labelled the federal sales tax holiday for new rental construction as a "limousine Liberal measure.".According to Blacklock’s Reporter, Finance Minister Chrystia Freeland introduced a GST holiday bill that omitted the Cabinet's 2015 commitment to tying the tax break to the construction of 'affordable rental housing.'.“We want the builders who qualify for it to have affordable apartment rentals so Canadians could actually live in them,” Opposition leader Pierre Poilievre told the Commons. .The bill would “give tax breaks for $10 million penthouse apartments,” said Poilievre. .“God forbid the limousine Liberals want all the money to go to the penthouse apartments.”.New Democrat MP Alexander Boulerice (Rosemont-La Petite Patrie, QC) expressed criticism of the tax holiday, describing it as "ridiculous.".“It does not contain any definition of affordable housing,” said Boulerice. .“It’s just ridiculous, insulting even. What planet do Liberals live on?”.Bill C-56 An Act to Amend the Excise Tax Act temporarily suspends the GST on new “purpose-built rental housing” retroactive to September 13. .The tax holiday will remain on new construction undertaken before 2031 and “substantially completed” by 2036 but sets no restrictions on types of rentals that qualify..Freeland told reporters the measure would “get more housing built faster.”.Minister Freeland did not provide specific details about the number of housing starts. However, a 2021 Budget Office Cost Estimate indicated that this would cost $383 million annually..“Why did you make this choice?” asked a reporter. .“This is a targeted measure for the construction of rental apartments,” replied Freeland..“It is precisely to change the economics a little that the big builders will use when deciding, ‘Am I going to build luxury condos or am I going to build apartments for rent?’ We know the great need in the economy today in the housing market is that there is a shortage of rental apartments.”.In a 2015 Ministerial Mandate letter, the cabinet pledged a tax holiday linked to affordable housing..The Mandate said the cabinet would “encourage the construction of new affordable rental housing by removing all GST on new capital investments in affordable rental housing.”.On Thursday, Prime Minister Justin Trudeau stated his government is committed to affordable housing..“Given the challenges people have in building new apartment buildings, we realize it’s the right time,” said Trudeau..Bill C-56 would also change the Competition Act, granting anti-trust lawyers new authority to initiate investigations into any "market or industry.".The proposed bill would also grant the Competition Tribunal more extensive powers to prohibit corporate mergers that are considered to “prevent or lessen competition in any market.”.“We will give more power to the Competition Bureau to conduct and complete more effective investigations through compelling the production of information,” said Industry Minister François-Philippe Champagne. .“Second, we will make it easier to block mergers that are not in the best interests of consumers.”.“What we need today is more competition,” Champagne told reporters. .“If you look around the world, this is the best way to lower prices.”
Critics labelled the federal sales tax holiday for new rental construction as a "limousine Liberal measure.".According to Blacklock’s Reporter, Finance Minister Chrystia Freeland introduced a GST holiday bill that omitted the Cabinet's 2015 commitment to tying the tax break to the construction of 'affordable rental housing.'.“We want the builders who qualify for it to have affordable apartment rentals so Canadians could actually live in them,” Opposition leader Pierre Poilievre told the Commons. .The bill would “give tax breaks for $10 million penthouse apartments,” said Poilievre. .“God forbid the limousine Liberals want all the money to go to the penthouse apartments.”.New Democrat MP Alexander Boulerice (Rosemont-La Petite Patrie, QC) expressed criticism of the tax holiday, describing it as "ridiculous.".“It does not contain any definition of affordable housing,” said Boulerice. .“It’s just ridiculous, insulting even. What planet do Liberals live on?”.Bill C-56 An Act to Amend the Excise Tax Act temporarily suspends the GST on new “purpose-built rental housing” retroactive to September 13. .The tax holiday will remain on new construction undertaken before 2031 and “substantially completed” by 2036 but sets no restrictions on types of rentals that qualify..Freeland told reporters the measure would “get more housing built faster.”.Minister Freeland did not provide specific details about the number of housing starts. However, a 2021 Budget Office Cost Estimate indicated that this would cost $383 million annually..“Why did you make this choice?” asked a reporter. .“This is a targeted measure for the construction of rental apartments,” replied Freeland..“It is precisely to change the economics a little that the big builders will use when deciding, ‘Am I going to build luxury condos or am I going to build apartments for rent?’ We know the great need in the economy today in the housing market is that there is a shortage of rental apartments.”.In a 2015 Ministerial Mandate letter, the cabinet pledged a tax holiday linked to affordable housing..The Mandate said the cabinet would “encourage the construction of new affordable rental housing by removing all GST on new capital investments in affordable rental housing.”.On Thursday, Prime Minister Justin Trudeau stated his government is committed to affordable housing..“Given the challenges people have in building new apartment buildings, we realize it’s the right time,” said Trudeau..Bill C-56 would also change the Competition Act, granting anti-trust lawyers new authority to initiate investigations into any "market or industry.".The proposed bill would also grant the Competition Tribunal more extensive powers to prohibit corporate mergers that are considered to “prevent or lessen competition in any market.”.“We will give more power to the Competition Bureau to conduct and complete more effective investigations through compelling the production of information,” said Industry Minister François-Philippe Champagne. .“Second, we will make it easier to block mergers that are not in the best interests of consumers.”.“What we need today is more competition,” Champagne told reporters. .“If you look around the world, this is the best way to lower prices.”
