Federal government will remove GST on new rental housing builds, source tells CP

Prime Minister Justin Trudeau will announce Thursday that Ottawa is removing the GST on construction of new rental apartment buildings, according to a senior government source.

The source spoke on the condition of anonymity to discuss matters that were not yet public.

The change would lower the cost of labour and materials for homebuilders, and is one of the components of an affordability announcement Trudeau was set to make in the afternoon, the source said.

Finance Minister Chrystia Freeland, Housing Minister Sean Fraser and Industry Minister François-Philippe Champagne are also to be at the announcement in London, Ont.