Vancouver, BC – The Urban Development Institute (UDI) is cautiously examining the implications of today’s HST Referendum results. While the industry recognizes there are many positive aspects of a harmonized tax system for the industrial and commercial development sectors, the HST has had a significant adverse impact on the residential home building sector and housing affordability.
The uncertainty created in BC’s investment environment from the tax’s introduction, throughout the public debate, and now transitioning towards its removal has been detrimental to an industry that is central to BC’s economy. UDI calls on the Government to work closely with the development industry to facilitate a smooth transition towards a more certain tax environment.
“The transition away from the HST will create much uncertainty within the development industry and amongst new homebuyers. Many questions will need to be answered and we are anticipating that the Government has considered the possibility of this outcome and its implications on the housing market,” said Ms Maureen Enser, UDI Executive Director. “Further the industry is seeking assurances that no additional taxes will be applied to new housing in BC.”
Ms Enser said, “Having complex transitional rules and a prolonged transitional period is deeply concerning to our industry. Homebuyers may be wary of purchasing units if they do not understand what the tax rules are or what they will be paying in tax.” We urge the government to clarify the rules as soon as possible.”
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The Urban Development Institute is the premier industry body representing over 550 of British Columbia’s leading residential, commercial, industrial and institutional developers. The urban development industry in BC generates $30 billion worth of economic activity and over 250,000 jobs for the Province each year.
Contact:
Adrien Byrne
Communications
abyrne@udi.org
604.669.9585
