Repealing the General Sales Tax (GST) on certain new home purchases, a policy proposed by both the Liberals and the Conservatives, would cost $400 million to $2 billion annually, according to the Parliamentary Budget Office (PBO).
The Liberal Party has said it would get rid of the GST on new and “substantially renovated” homes costing under $1 million for first-time homebuyers, while the Conservative Party has proposed to get rid of the GST on new homes costing up to $1.3 million, up from the $1 million initially announced in October 2024.
According to the PBO, the Liberals’ plan would cost $383 million in 2025, $378 million in 2026, $391 million in 2027, $413 million in 2028, and $429 million in 2029, for a five-year total of nearly $2 billion, as first reported by Blacklock’s Reporter.
The Conservatives’ plan, meanwhile, would cost $1.8 billion in 2025, $1.9 billion in 2026, $2 billion in 2027 and 2028, and $2.1 billion in 2029, costing a total of $9.8 billion over five years.
PBO analysts wrote in the report “Election Proposal Costing” that the cost of the measures was calculated as the difference in sales tax revenue relative to the current policy. “No…
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