P.E.I. builders, officials split on GST cut for housing

Pierre Poilievre’s plan to eliminate the 5% GST on new homes under $1 million has sparked a divided response in Prince Edward Island (PEI). The Conservative leader argued the tax break would reduce housing costs, writing to provincial leaders, including PEI Premier Dennis King, to urge them to cut provincial sales tax on new homes as well.

Some developers, like Alex Davidson of Holmes Construction, support the proposal. Davidson said the tax reduction would ease the cost of materials, making it more feasible for Islanders to build.

However, critics, including Summerside Mayor Dan Kutcher, worry that lost tax revenue could impact federal housing programs vital to municipal infrastructure. Federal Minister Randy Boissonnault also expressed concern, calling Poilievre’s approach “reckless” if it means cutting existing housing support programs. Local leaders emphasize that sustainable housing requires not only affordable homes but robust infrastructure and services.