Whitby council is urging the federal and provincial governments to remove GST/HST from all newly built or substantially renovated homes purchased as primary residences in Ontario, citing growing concerns over housing affordability.
Council passed a resolution calling on both levels of government to eliminate the tax burden on new primary homes, directing staff to forward the request to the Prime Minister of Canada, federal ministers responsible for finance, housing, infrastructure and communities, as well as the Premier of Ontario, provincial ministers, Whitby’s MP and MPP, the Association of Municipalities of Ontario, and municipalities across the province.
Councillor Rhonda Mulcahy said housing affordability remains one of the most pressing challenges facing Ontario families.
Currently, buyers of new homes in Ontario face a 13 per cent GST/HST, which can add tens of thousands of dollars to the purchase price of a typical home.
While federal and provincial rebates exist for new homes purchased from builders, Whitby officials noted those rebates are tied to purchase-price thresholds that most new homes in Ontario exceed, limiting their effectiveness in improving affordability.
Recent proposals from the federal and provincial governments would expand GST/HST rebates only for first-time homebuyers purchasing newly built or substantially renovated homes. However, according to research cited from the Ontario Home Builders’ Association, first-time buyers account for only about five per cent of the new home market, significantly reducing the overall impact of those measures.
Whitby council said removing GST/HST on all primary residences would provide broader relief and help address affordability challenges for a wider range of homebuyers across the province.
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