The federal and Ontario governments are scrapping rental-housing
construction taxes as Canada grapples with a severe multi-residential property supply shortage.

Prime Minister Justin Trudeau announced the immediate end of goods and
services tax charges on rental-housing development projects Thursday as his Liberal government concluded a cabinet retreat in London, Ont. A short time later, Ontario Premier Doug Ford’s government said it will lift the provincial sales tax on rental-housing construction “as soon as possible.”

The moves come after years of clamouring from investors and developers who have sought incentives that would offset underlying macroeconomic pressures, including rising interest rates, higher labour and materials costs, and market turbulence.

Trudeau made good on a promise that he made in 2015 before stalling on its delivery.