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Quebec  + Canada + Maritimes + Ontario  + Apartments  | 
Three levels of government are investing $154 million in five rental multi-residential development projects in Quebec City.

Quebec Refuses to Scrap Rental-Housing Construction Sales Tax

The Quebec government is refusing to abolish its sales tax on rental-housing construction projects after Ottawa exempted them from the GST.

“It’s something that would cost a lot of money,” Quebec Premier François Legault told reporters in New York on Wednesday morning.

Finance Minister Eric Girard said a preliminary estimate shows that the move would cost Quebec $1.5 billion.

“We are looking at several scenarios to help tenants. We don’t think it would be the most effective measure in the short term,” said Legault during the news briefing.

After Ottawa recently scrapped GST charges on multi-residential rental projects, Ontario and Newfoundland Labrador agreed to lift their provincial sales taxes. Quebec’s refusal comes after prominent developer William Trudel called for the provincial sales tax to be removed on multi-family rental projects.

The federal government has urged Nova Scotia to exempt such projects from its sales tax. But Nova Scotia has not responded publicly.

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


Inside The Story

Government of QuebecMonte Stewart

About Monte Stewart

Monte Stewart serves as Content Director - Canada for Connect Commercial Real Estate. Based in Vancouver, British Columbia, Monte provides daily news coverage of major Canadian commercial real estate markets, including Vancouver, Toronto, Montreal and Calgary. He has written about the real estate sector for various media outlets and Avison Young since the early 2000s. In addition, he has covered sports, general news and business for several leading wire services and publications, including The Canadian Press, The Associated Press, The Calgary Herald, The Globe and Mail, Research Money, The Daily Oil Bulletin, Natural Gas World and The Toronto Star. Monte is active in his community as a youth basketball coach and raises funds for such charitable causes as Movember.

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