HALIFAX — Nova Scotia’s premier says his government will remove the provincial portion of the harmonized sales tax from the construction of new rental apartment buildings.
Tim Houston says the province plans to mirror a move announced recently by the federal government, which is removing GST on rental housing starts.
The measure is aimed at lowering the cost of labour and materials for homebuilders.
Nova Scotia’s 15 per cent harmonized sales tax combines the federal GST and the provincial sales tax, with the provincial portion amounting to 10 per cent.
Houston says his government will remove the tax for two years and then reassess the effects on the market.
The premier estimates the move will cost the government between $80 million and $100 million a year.
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