Reckless as it seems, the additional 15% taxation charge to the foreign buyers of Metro Vancouver houses is controversial. The decision taken by the British Columbia government (CBC) did shock the foreigners but it was more immense of a shock as the action took place just on an 8 day notice.

CBC’s decision was vital for both foreigners and citizens or permanent residents of Canada. Considering the foreigners, the additional 15% tax puts a halt to the foreigners buying real estate properties as the prices have increased a lot more than before. There are many immigrants who are a big portion of Canadian residents, doing jobs and residing in Canada. It is particularly unfair for the immigrants as the decision taken by CBC was not consulted with any real estate professional.

While the decision was a bit harsh for the immigrants, CBC did do justice to the citizens and permanent residents of Canada. The revenue earned per million dollars from the foreigners was 150,000 dollars. CBC stated that this revenue will be used to fund housing and to support other rental programs. Moreover, the additional taxation charge will make houses more affordable for the middle-class buyers.

Government of BC thinks this issue very differently. They are more biased to the side of the citizens and permanent residences. This does open a lot of doors to the locals, making the locals seem much more prestigious than the foreigners. But is this decision actually justified? Maybe yes or maybe no. Is additional tax charged to foreigners really assisting the locals? Definitely not in my point of view. Housing costs are extremely high in Metro Vancouver, which makes it almost impossible for the locals to buy it in the first place. And also, the rental prices are high too. Basically, this is more of a worry to the immigrants as they need to pay more to buy the houses. Which means it’s providing more revenue to the BC government, causing not much of an aid to the locals and displeasing the immigrants as they are paying more than it is required.

Immigrants don’t get as much facilities when it’s compared to the locals of Canada. Most of the services provided to immigrants cost higher. In example, tuition fees required for international students is almost 5 times higher compared to the locals of Canada. This issue of additional tax charge is more of a threat to the foreigners in my terms.

See Rex Cheng’s blog for further thoughts on the 15% tax on foreign buyers.

Word count: 430

Sources

“Province to Tax Foreign Buyers of Metro Vancouver Homes.” N.p., n.d. Web.