Calls to cut PST on new home construction intensify in Sask.

A rebate on the Provincial Sales Tax (PST) on new home builds was an election promise from the Saskatchewan Party. However, the federal Conservatives have gone one step further – calling for the GST on the builds to be axed nationwide.

Leader Pierre Pollievre recently promised to cut the five per cent General Sales Tax (GST) on new home construction and are calling on provinces to do the same with the PST.

“After nine years of Trudeau and the NDP Liberals, housing costs have doubled. They've risen more in Canada than in any other G7 country,” he said.

Stu Niebergall serves as the executive director of the Regia and Region Home Builders Association. He told CTV News that the elimination of the two taxes would result in significant savings to home purchasers.

"That works out to about $240 a month on a mortgage payment and if the province were to match that, that would be a savings of abut $450 or more on the average mortgage payment on a new home,” he explained.

“That's not an insignificant amount."

Poilievre's proposal would apply to new homes worth up to $800,000.

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Saskatchewan is temporarily rebating 42 per cent of the PST on new home construction labour but the NDP believe it should be eliminated entirely.

"It's certainly fair to call out the Sask. Party's PST on home construction, home maintenance [and] construction labour,” NDP MLA Trent Wotherspoon told CTV News.

“This was a wrong-headed move from the get-go, the epitome of a job killing tax and it’s driven up the cost of home ownership and home building."

The Saskatchewan government did not have anyone available to comment on elimination of the PST on new home construction.

In a written statement, the government said any change to taxation would have to be considered as part of the budgetary process.