OHBA proposes changes to the upcoming HST tax law

In a media release issued on November 2, 2009, the Ontario Home Builder’s Association urges the government to reconsider current HST laws, in an effort to protect homeowners and OHBA members from underground renovation schemes.  According to the advisory, the government will lose up to$1.6B annually in falsified income tax schemes, and as much as $298M per year in GST as consumers choose to pay cash.

To curb growing activity in the underground economy, save jobs and stem government revenue losses, OHBA says consumers should get HST and GST rebates on contractor renovation projects.  For example, the current Home Renovation Tax Credit has been tremendously popular and encourages consumers to seek out legitimate contractors.

With the future of the Home Renovation Tax Credit unknown, and the looming HST introduction for July 1, 2010, the future looks somewhat uncertain for the renovation industry.  To find the full Altus report on the impact of sales tax harmonization on the residential renovation sector, please visit the Ontario Home Builder’s Association website.

Tags: Home Renovation Tax Credit, HST