Abolishing the QST on building materials would be too expensive, says Quebec premier
Premier François Legault says that abolishing the Quebec sales tax (QST) on building materials would be far too costly a measure in relation to its effectiveness.
"It's something that would cost a lot of money," said the premier at a news briefing in New York on Wednesday morning.
Finance Minister Eric Girard gave a preliminary estimate that such a measure 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.
The premier indicated that his Minister of Housing, France-Élaine Duranceau, and Girard would be looking at other options. He pointed out that an economic update would be unveiled in November.
Prime Minister Justin Trudeau announced that Ottawa will eliminate the federal sales tax on the construction of new rental buildings, following through on a 2015 election promise that his government had abandoned.
He encouraged the provinces to follow suit. Ontario, British Columbia Newfoundland and Labrador have followed suit.
The aim of the measure is to stimulate the construction of new housing.
This report by The Canadian Press was first published in French on Sept. 20, 2023.
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