Ontario announced it is removing the provincial portion of the Harmonized Sales Tax (HST) on all new purpose-built rental housing moving forward.
"This step makes it cheaper and easier to build rental housing in Ontario," said Paul Calandra, the province's minister for municipal affairs and housing. "Ontario’s housing supply crisis is serious, and it demands a serious response."
The announcement comes after the federal government announced a similar measure in September, after which the feds called on all provinces to join them in incentivizing developers to build more rental housing. While Ontario committed to removing the tax back in September, on Wednesday, a day before the province is set to release its fall economic statement, the province made good on its promise.