WASHINGTON—The federal government welcomes the move to tax foreigners’ home purchases in Toronto.
Finance Minister Bill Morneau says his government was consulted in advance of the move by the Ontario government.
He says the 15-per-cent tax on foreign purchases achieves several goals including reducing speculative purchasing, a factor in skyrocketing housing prices there.
But Morneau is adamant: there will be no similar plan at a national level, because different cities have different housing markets and most don’t face the same pricing surge as Toronto and Vancouver.
Morneau made the remarks to reporters at global financial meetings in Washington.
Later tonight, he will attend the Toronto Maple Leafs-Washington Capitals playoff game with Mexico’s finance minister.