FOG BLOG CANADA LOG: PM JUSTIN TRUDEAU ANNOUNCED AXING THE GST ON NEW CONSTRUCTION OF APT UNITS!

Federal government to remove GST from construction of new rental apartments New measure among several cost-saving policies announced in London, Ont. The federal government said Thursday it will eliminate the GST on the construction of new rental apartments immediately in an effort to make housing more affordable.

Reporters at the Liberal caucus retreat in London, Ont., were told that the measure is one of several new government policies aimed at bringing down the cost of living.

Trudeau made the announcement Thursday afternoon alongside Deputy Prime Minister and Finance Minister Chrystia Freeland and Innovation Minister Francois-Philippe Champagne.

The NDP, which has been calling for the federal portion of the GST/HST to be removed from new rental housing, welcomed the move but criticized the Liberals for taking so long to implement it.

"These are actions that should have been taken months ago," NDP Leader Jagmeet Singh said in a media statement.

"If they had removed the GST from new affordable rental buildings when we first called for it six months ago, we could have had an entire construction season to get more homes built."

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Trudeau and his government have been under heavy pressure in recent months to offer a response to the housing shortage. That pressure increased late last month after the Liberal cabinet retreat in P.E.I. ended without an announcement of new measures to tackle the crisis.

On Wednesday in London, Ont., Trudeau announced that the city had become the first in Canada to reach a deal with his government under the Housing Accelerator Fund, first announced during the 2021 election campaign and introduced in the 2022 federal budget.

The fund allocates $4 billion until 2026-27 to prompt more homebuilding in cities. The deal will see London get $74 million in exchange for the city's agreement to pursue a series of measures, including a change to local zoning rules that should make it easier to build more rental units.

According to federal and municipal officials, the agreement will result in the construction of 2,000 housing units over the next three years and will help build "thousands" more in the years after.