Monday, April 10, 2006
REALTORS welcome GST reduction
News Release: April 4, 2006
NANAIMO, BC - The President of the Vancouver Island Real Estate Board is pleased with the federal government's GST reduction plans, announced in Tuesday's federal Throne Speech.
"REALTORS have long advocated a comprehensive review of the tax and regulatory barriers to the affordability of housing. One of those has been the GST as it applies to newly constructed housing," explains Darrell Paysen.
"The GST is charged on professional services used by consumers during the course of a housing transaction, including fees paid to lawyers, appraisers, home inspectors and REALTORS.
"Reducing the GST rate will have the effect of reducing the costs associated with buying or selling a home," Paysen notes. "It would also have an impact on the associated costs of moving house."
REALTORS point out that the Conservative proposal will reduce the cost of new homes, and the cost of services associated with a real estate transaction. A one per cent reduction in the GST rate would save a homeowner $2,500 on a new home selling for $250,000.
"When the proposed five per cent GST rate is combined with the existing new housing rebate, the effective rate of federal sales taxation on new homes would be restored to the level that applied prior to the introduction of the GST in 1991," he outlines.
"The Canadian Real Estate Association has also been calling on the government to adjust the GST thresholds to bring them into line with 2006 housing markets," Paysen says.
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For more information, please contact:
Darrell Paysen, President, 250-748-5000
Drew Harris, Communications Coordinator, 250-390-4212
NANAIMO, BC - The President of the Vancouver Island Real Estate Board is pleased with the federal government's GST reduction plans, announced in Tuesday's federal Throne Speech.
"REALTORS have long advocated a comprehensive review of the tax and regulatory barriers to the affordability of housing. One of those has been the GST as it applies to newly constructed housing," explains Darrell Paysen.
"The GST is charged on professional services used by consumers during the course of a housing transaction, including fees paid to lawyers, appraisers, home inspectors and REALTORS.
"Reducing the GST rate will have the effect of reducing the costs associated with buying or selling a home," Paysen notes. "It would also have an impact on the associated costs of moving house."
REALTORS point out that the Conservative proposal will reduce the cost of new homes, and the cost of services associated with a real estate transaction. A one per cent reduction in the GST rate would save a homeowner $2,500 on a new home selling for $250,000.
"When the proposed five per cent GST rate is combined with the existing new housing rebate, the effective rate of federal sales taxation on new homes would be restored to the level that applied prior to the introduction of the GST in 1991," he outlines.
"The Canadian Real Estate Association has also been calling on the government to adjust the GST thresholds to bring them into line with 2006 housing markets," Paysen says.
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For more information, please contact:
Darrell Paysen, President, 250-748-5000
Drew Harris, Communications Coordinator, 250-390-4212
