NAIOP CANADA APPLAUDS THE REMOVAL OF GST/HST ON PURPOSE-BUILT RENTALS

TORONTO, Sept. 15, 2023 /CNW/ - NAIOP Canada applauds the Government of Canada's announcement yesterday exempting the GST/HST on purpose-built rental buildings. Rental apartment buildings are an essential component of Canada's housing stock but the application of the GST/HST has been a deterrent to additional rental construction. While we will need to review the details of the announcement and the related regulations, Minister Fraser's move to exempt the GST/HST on these projects will ideally make it easier to build rental housing and will help unlock thousands of rental units across the country.

We welcome the quick decision by the Governments of Ontario, British Columbia and Newfoundland & Labrador to match the federal government's commitment to eliminate the HST. NAIOP Canada calls on other provinces with HST on purpose-built rentals to make the same commitment.

NAIOP Canada represents developers, owners and related professionals in office, industrial, retail and mixed-use real estate. With members from NAIOP Chapters in Calgary, Edmonton, Toronto and Vancouver, we are experts on commercial real estate matters across Canada.

Chris Ollenberger, Director of NAIOP Calgary said "We are pleased that the government recognizes that the GST/HST is an impediment to building new purpose-built rental housing in Canada. This is a great step forward towards getting more housing built, faster. We hope all provinces will match the federal initiative. NAIOP members create retail, office, industrial, multi-family and other commercial spaces where Canadians work every day."

NAIOP Canada looks forward to meeting with Minister Fraser to discuss other policy proposals to help address the housing crisis. As the oversupply of office space continues to be a significant issue across the country (highlighted in Altus Group's recent report) easing the conversion or replacement of older obsolete office buildings into residential housing or mixed use developments should be another component of the federal and provincial response to the demand for new housing.

SOURCE NAIOP Canada

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