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441-01461 (Taxation)
Original language of petition: English
Petition to the Government of Canada
WHEREAS:
- When the GST New Housing Rebate was introduced alongside the GST in 1991, the Government of Canada committed to adjusting the qualification thresholds every two years to reflect increases in housing prices;
- Since 1991, the GST New Housing Rebate has not been adjusted since it's implementation;
- The New Housing Price Index, which measures the change in newly constructed house prices over time, has increased from 56 in 1991, to 125 today; and
- Canada is in desperate need of immediate action to address housing affordability and build more homes.
THEREFORE:
We, the undersigned citizens and permanent residents of Canada, call upon the Government of Canada to increase the qualification thresholds for the GST New Housing Rebate to reflect the dramatic increase in the average cost of a newly constructed house since 1991.
Response by the Deputy Prime Minister and Minister of Finance
Signed by (Minister or Parliamentary Secretary): The Honourable Chrystia Freeland
The GST New Housing Rebate entitles a home buyer to recover a percentage of the GST paid on the purchase of a new home.
The rebate was introduced at the inception of the GST to result in an effective tax rate for most new housing of approximately 4.5 percent (based on a 7 percent GST rate), consistent with the amount of Federal Sales Tax embedded in the price of new homes prior to 1991.
Despite the reduction in the GST rate to 5 percent, the rebate has been maintained. As a result, the effective tax rate for new housing currently ranges from as low as 3.2 percent (when the full rebate applies) to as high as 5 percent (when the rebate no longer applies), which is still largely consistent with the original target effective rate of 4.5 percent.
- Presented to the House of Commons
-
Brad Vis
(Mission—Matsqui—Fraser Canyon)
May 17, 2023 (Petition No. 441-01461) - Government response tabled
- August 16, 2023
Only validated signatures are counted towards the total number of signatures.