Ottawa is urging the Nova Scotia government to remove its 10% sales tax from apartment-construction projects.

Federal Housing Minister Sean Fraser sought the removal in a letter to Nova Scotia Premier Tim Houston after Ottawa scrapped the GST on apartment projects last week to help curb Canada’s severe rental-housing shortage.

GST will no longer be applied to Nova Scotia apartment-construction projects. If the Nova Scotia premier abides by the federal request, he will provide rental-housing investors and developers with bigger tax savings.

Ontario and Newfoundland and Labrador have agreed to lift their sales taxes in wake of the federal move. But Nova Scotia has not responded publicly to Fraser’s request. Nova Scotia Liberal Leader Zach Churchill called on Houston’s Conservative government to comply.

“I’ve talked to builders and developers who think this could save them substantial money when it comes to building new homes and apartment buildings,” Churchill told CBC.

Housing Minister Fraser is also a Nova Scotia MP.

NAIOP Canada has called for all remaining provincial rental-housing construction taxes to be scrapped.

Photo: Roy Harris / Shutterstock.com