March 11 - GST/PST Harmonization
March 11, 2009
RE: GST/PST HARMONIZATION
We can't think of anything that would be more harmful to home buyers and homeowners, not to mention homebuilders and professional renovators, than harmonization of the GST and PST at this or any other time. That's why we have remained on constant guard against it ever since the GST took effect in 1991.
Late last Fall, Ontario Premier Dalton McGuinty floated a trial balloon with respect to harmonization and from that moment on, BILD has maintained a full court press on the government via direct communications and indirectly through the media.
This morning, BILD turned up the heat with a news release titled Tax Harmonization Would Slam Door on Homebuyers, revealing that harmonization of PST and GST without any offsetting measures would rip at least $2.4 billion dollars out of the pockets of new home buyers.
Simultaneously, BILD released a research report by our Economic Advisor, Dr. Frank Clayton of the Altus Group, documenting the impact of harmonization under various scenarios on home buyers in nine cities across Ontario for three different product-types.
Clayton's research report, titled New Housing is Different: Implications for Sales Tax Harmonization on New Home Buyers in Ontario, documents single-detached home tax increases ranging from nearly $12,000 in Windsor to more than $46,000 in Toronto -- that's the increase, not the total!
Clearly, tax harmonization couldn't come at a worse time and runs completely contrary to the Province's efforts to stimulate spending and jobs. That said, stranger things have happened, which is why we are taking absolutely no chance that the provincial government could impose harmonization in a vacuum.
The Clayton report provides the provincial government with a simple and fair solution for new homes and renovations. The ball is now in their court and you can rest assured that we're keeping the pressure on. Stay tuned for further updates!
Please click HERE to read BILD's new release on tax harmonization
Please click HERE to review the backgrounder
Please click HERE to read the full report