B.C. Finance Minister No Signs Of Enforcing Real Estate Speculation Tax

Over the past few days there have been an increase in the number of people who are calling for action with regards to combating the price of real estate in Metro Vancouver. However, B.C. Finance Minister has indicated that he is not looking at implementing the proposed “speculation tax.”

When asked about the issue on Monday this week, Mike de Jong, B.C. Finance Minister, indicated that they will not be implementing the proposed measures.

“You’ve got to be careful about intervening,” he said.

The proposed “speculation tax” were made by developer Bob Rennie as well as Gregor Robertson, the mayor of Vancouver. According to the two, the best way in which they can be able to solve the situation that the country is facing at the moment is to see to it that speculation tax on homes is flipped quickly once they have been bought something that the B.C. Finance Minister is not endorsing.  

“Those who are expressing a concern, if you really assess what they are seeking, it’s a reduction in the value of homes in Vancouver, and that will have an impact on a lot of families,” he said.

As was with the case with Premier Christy Clark earlier last week, the B.C. Finance Minister showed great concern to homeowners who stand to lose a lot in terms of equity if new tax was implemented.

“If property values in Vancouver were to be reduced by, let’s say, 5 per cent, that could easily translate in a reduction of equity of families who own homes in Vancouver of 60, 70, or 80 thousand dollars. You’ve got to be careful about how you use the tools and the levers of taxation, and you have to be clear on what your objectives are,” he said.