Finance Minister Chrystia Freeland introduced legislation Thursday morning that would remove GST charges from new rental developments and update Canada’s competition law.
Prime Minister Justin Trudeau promised the new legislation earlier this month to address the housing crisis and affordability crunch.
During a news conference in New York City on Thursday, the prime minister called on other parties to support the legislation.
“I urge opposition leaders back home to help us get today’s real solutions passed quickly,” Trudeau said.
Experts have called on the federal government to remove GST charges from new purpose-built rentals to help spur construction of these homes.
According to the Finance Department, the measure will provide $25,000 in tax relief for a two-bedroom apartment valued at $500,000.
New projects that began construction between Sept. 14 and the end of 2030 are eligible for the full rebate.
These projects must finish construction by the end of 2035.
The bill is also supposed to strengthen the Competition Bureau — part of the federal government’s efforts to address high prices driven by a lack of competition.
A rise in gas prices is driving Canada’s inflation rate higher. Statistics Canada reports the annual inflation rate rose to four per cent in August, beating many economists’ expectations and raising the possibility of another interest rate hike.
The legislation would give the bureau the power to compel information from companies to conduct market studies and block collaborations that stifle competition and consumer choice.
It would also eliminate the “efficiencies defence,” which has been used to approve anti-competitive mergers in cases where the efficiencies generated offset the competitive harm.
The changes to the Competition Act follow a promise the Liberals made to review the law.
Freeland, along with several other cabinet ministers, are to hold a news conference this afternoon to talk about the new legislation.
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