Budget Digestion Giving Some Heartburn
By 250 News
Thursday, May 04, 2006 03:58 AM
With nearly 48 hours to digest all the numbers, the federal budget is now getting mixed reviews.
New car dealers are concerned potential buyers will hold off until July 1st before buying vehicles as they wait for the drop in the gst.
Real estate companies don't seem too concerned as most buyers will close their deals on 60 day basis. The BC Northern Real Estate Board figures the budget will mean more people will have more money and a better chance of maintaining and financing a home.
“Local realtors welcome the reduction in the GST rate to six per cent, which will have the effect of reducing the costs associated with buying or selling a home,” said Board President, Ted Shepard.
GST is charged on professional services including fees paid to lawyers, appraisers, home inspectors and realtors.
The GST is also paid on new homes so a family purchasing a new $200,000 home will save $1,280 in GST when the New Housing GST Rebate is included.
On the municipal side, the news looks good, although Prince George City Manager, George Paul is cautiously optimistic:
"All of the Federal Budget initiatives around accountability, opportunity, communities and security are welcome. However the story is always in the detailed programs that arise from the budget. We do not yet know how the programs and funds will be administered and how the grant funds will flow to local governments. I look forward to getting that information in the months
to come."
to come."
The Federation of Canadian Municipalities says the budget is good news because it addresses the "fiscal imbalance" and makes a commitment to continue funding existing infrastructure programs.
The complete Federation of Canadian Municipalities analysis can be viewed at:
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