Thursday, July 13, 2006
New Tax - a correction
A correction to yesterday's post about the proposals for a goods and services tax (GST). The proposals exempt both the sale and the leasing of residential accomodation from the proposed GST regime. So my expectation regarding the impact of GST on housing values is at least partially incorrect. I say "partially" because I did not see anything that exempted the components used to construct housing. So, unless this changes, there will still be a partial GST impact on the cost of constructiong housing and, logically, some follow through for secondary market prices.