The Legault government currently prefers to rely on subsidies rather than eliminating the QST to stimulate residential construction. Finance Minister Eric Girard considers this measure too costly and insufficiently effective.
“It is a measure that is expensive and diffuse when we look at the number of housing units that will be created,” declared Finance Minister Eric Girard on Wednesday morning.
The state’s fiscal watchdog estimates it would cost $1 billion over five years to repay construction costs for the housing projects.
Mr. Girard instead plans to provide subsidies to builders during the economic update in November.
From New York, where he is on mission, Prime Minister Legault also sent negative signals on a possible elimination of the QST on Wednesday. “It’s something that would be very expensive,” he said.
“We are looking at several scenarios to help tenants. We do not think that in the short term this would be the most effective measure,” added Mr. Legault. The federal government, which has already announced that it plans to eliminate the GST, is currently pressing the provinces to do the same thing with their own taxes. “I encourage every province, including Quebec, to use every tool to build houses,” said Housing Minister Sean Fraser Wednesday morning.
With Boris Proulx and The Canadian Press
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