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.